Altcoins
Ethereum ETFs Will Drive “All Altcoins on Wall Street”
The cryptocurrency industry seems excited and confident following the final approval of spot Ethereum Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC). As investors await the official launch of the investment product, many have been discussing the implications of today’s debut.
American entrepreneur Anthony Pompliano recently joined CNBC’s Squawk Box to discuss the highly anticipated launch and its potential impact on the market. For Pompliano, the ETH ETF story is not as “clear” as that of Bitcoin ETFs, but it will lead to broader adoption for the cryptocurrency industry.
Will Ethereum ETFs Be Comparable to Bitcoin?
On Tuesday, Anthony Pompliano, CEO of Professional Capital Management, discussed the latest milestone in the cryptocurrency industry. During the interview with CNBC, the American entrepreneur shared his thoughts on the approval and launch of spot Ethereum ETFs.
Anthony Pompliano joins CNBC's Squawk Box. Source: Anthony Pompliano on X
Pompliano said that Bitcoin (BTC) ETFs have had a huge impact on the industry and its adoption, calling it “historical, probably the best ETF launch in history.” He noted that BTC-based investment products continue to see substantial inflows.
“One of the interesting stats is that the BlackRock Bitcoin ETF has had more inflows than the QQQ year-to-date,” Pompliano said, noting that just yesterday, BTC products had Almost $500 million in inflows.
These numbers raise the question of whether the second cryptocurrency-related ETF launch will be as big as the first. The BTC bull believes it won’t be comparable to the BTC ETF numbers because “people aren’t talking about it as much. The media attention, the hype, all that stuff isn’t really there.”
Pompliano believes that the reason for the lack of media and general attention is due to the fact that ETH’s story is “not as clear” as BTC’s. explained that the story “is clear with Bitcoin, it’s digital gold,” while people talk about Ethereum as a “technology platform” with “much more competition.”
All Altcoins “Are Coming to Wall Street”
Despite the “unclear” narrative, the American entrepreneur pointed out that companies like Bitwise have offered their ETH-based product as a form of diversification. Pompliano believes that this narrative could benefit the Ethereum-based investment product because it could attract people who don’t just want one cryptocurrency ETF, but a couple of them.
The CEO said that inflows from the newly launched products will not be “as big” as those Bitcoin “We need to see what the flows look like because the story is not that clear. You won’t have access to staking, so the cash flow that Ethereum people like is not available to these ETF holders,” he said.
However, Pompliano believes that the approval of ETH ETFs will have broader implications for the cryptocurrency industry. For him, the “interesting” conclusion of today’s launch is “less about Ethereum and more about the rest of the market.”
He believes today’s debut will bring all the altcoins to Wall Street, although it may take some time and more regulatory clarity before “these things get to Wall Street.” Pompliano added that the launch of ETH ETFs has potentially opened the door for cryptocurrency adoption beyond “just Bitcoin” in the industry.
So what went from zero to one, “Will it be Bitcoin or not?” is now going to become a cryptocurrency industry. And the reason why this is interesting is because people who have this portfolio model or portfolio approach are going to start applying it to all cryptocurrencies.
Ultimately, Pompliano predicted that Ethereum ETFs will have good inflow numbers and that the price of ETH will rise, “but it won’t be as large as people are hoping for because of these other pressures.”
Ethereum is trading at $3,499 in the weekly chart. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com