Approval of Ethereum spot ETFs marks a significant milestone for Bitcoin adoption, asserts MicroStrategy executive chairman Michael Saylor during his recent appearance on the What Bitcoin Did podcast. Saylor, a prominent Bitcoin investor, has consistently advocated for Bitcoin as the premier cryptocurrency for storing value, previously assuming that no other assets would attain regulatory legitimacy in the United States. However, recent developments indicate a shift in the country’s regulatory stance towards the cryptocurrency industry, reflecting a more accommodating approach.
Michael Saylor Wrong On Ethereum ETFs
“In the current landscape, the best expectation is that the crypto asset class will gain legitimacy and bipartisan support,” remarked Saylor during the interview. “Many aspects will be viewed in a more favorable light, with Bitcoin emerging as the leader of this asset class.”
This revised forecast contrasts sharply with Saylor’s earlier remarks at MicroStrategy World, where he confidently stated that Ether, the second-largest cryptocurrency, would not receive regulatory approval and would likely be labeled an unregistered security.
“At that time, I believed Ether would never be approved for a spot ETF, nor accepted by Wall Street or institutional investors,” he declared. “Bitcoin stands alone as the universally acknowledged institutional-grade crypto asset. There won’t be another like it.”
Previously, Bloomberg ETF experts had also expressed skepticism about the approval of Ether ETFs. However, regulators unexpectedly initiated discussions with issuers on their applications last week after months of silence. On Thursday, the agency granted approval for exchanges to list these funds, a move legal experts interpret as confirming Ether’s status as a non-security.
Changing Political Winds On Crypto
Saylor attributes the Securities and Exchange Commission (SEC)’s shift in stance, as well as that of the Biden administration, to a confluence of political developments in May.
Firstly, bipartisan legislation passed in both the House and Senate allowing banks in the United States to offer crypto custody services.
Following this, the House of Representatives approved FIT21, a comprehensive bill establishing a legal framework for crypto issuers and companies to operate within the bounds of the law.
Furthermore, former President Donald Trump voiced strong support for safeguarding citizens’ rights to hold cryptocurrencies if re-elected, pledging to counteract the Democratic party’s more adversarial position.
“I believe this is advantageous for Bitcoin – perhaps even more so, as we’re now backed by the entire crypto industry,” remarked Saylor. “In fact, I think it could expedite institutional adoption.”
