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The crypto industry seems excited and expectant following the US Securities and Exchange Commission (SEC)’s final approval of spot Ethereum Exchange-Traded Funds (ETFs). As investors await the official launch of the investment product, many have discussed the implications of today’s debut.
American Entrepreneur Anthony Pompliano recently joined CNBC’s Squawk Box to discuss the long-awaited launch and its potential market impact. To Pompliano, ETH ETF’s story is not “as clear” as Bitcoin ETFs, but it will lead to broader adoption for the crypto industry.
Will Ethereum ETFs Compare To Bitcoin’s?
On Tuesday, Anthony Pompliano, CEO of Professional Capital Management, discussed the latest milestone for the crypto industry. During the CNBC interview, the American entrepreneur shared his opinion on the approval and launch of spot Ethereum ETFs.
Pompliano stated that Bitcoin (BTC) ETFs have had a massive impact on the industry and its adoption, calling it a “historic thing, probably the best ETF launch in history.” He noted that the BTC-based investment products continue to register substantial inflows.
“One of the interesting stats is that the BlackRock Bitcoin ETF has had more inflows than QQQ year-to-date,” said Pompliano, highlighting that, just yesterday, the BTC products had nearly $500 million in inflows.
These numbers bring the question of whether the second crypto-related ETF launch will be as big as the first one. The BTC bull believes it won’t compare to the BTC ETF numbers as “people aren’t talking about it as much. The media attention, the hype, and all that stuff isn’t really there.”
Pompliano considers that the reason for the lack of media and general attention is because ETH’s story “isn’t as clear” as BTC’s. He explained that the story “is clear with Bitcoin, It’s digital gold,” while people discuss Ethereum as a “technology platform” with “a lot more competition.”
All Altcoins Will “Come To Wall Street”
Despite the “unclear” narrative, the American businessman highlighted that firms like Bitwise offered their ETH-based product as a form of diversification. Pompliano believes this narrative could benefit the Ethereum-based investment product since it could attract people who don’t want just one crypto-based ETF, but a couple of them.
The CEO asserted that the inflows of the newly launched products won’t be “as big” as the Bitcoin ones. “We got to see what the flows will be like because the story isn’t as clear. You are not going to get access to the staking, so the cash flow that people like about Ethereum isn’t available to these ETF holders,” he stated.
However, Pompliano believes the approval of ETH ETFs will have greater implications for the crypto industry. To him, the “interesting” takeaway from today’s launch is “less about Ethereum and more about the rest of the market.”
He considers today’s debut will lead all Altcoins to Wall Street, although it might take a while and require more regulatory clarity before “these things come to Wall Street.” Pompliano added that the ETH ETFs launch has potentially opened the door for crypto adoption from “just Bitcoin” to the industry.
So, what went from a zero to one ‘Is it going to be Bitcoin or is it not?’ is now going to be a crypto industry.’ And the reason why that becomes interesting is because people who have this portfolio model or portfolio approach are going to start to apply that to all of crypto.
Ultimately, Pompliano predicted that Ethereum ETFs will have good inflow numbers and that ETH’s price will go up, “but it’s not going to be to the magnitude that people are hoping for because of these other pressures.”
Featured Image from Unsplash.com, Chart from TradingView.com
