Tether Innovation Wall Street Greed to Spur More Cryptocurrency ETFs

Tether Innovation Wall Street Greed to Spur More Cryptocurrency ETFs

Tether Innovation Wall Street Greed to Spur More Cryptocurrency ETFs

Stablecoin issuer Tether and co-founder of the WAX blockchain, William Quigley, stated in an interview with Decrypt last week that the “greed” on Wall Street will bring more and more cryptocurrency spot ETFs. However, he also warned that while Wall Street’s interest is driving the development of the entire cryptocurrency market, it also brings risks.

Quigley predicted that under Wall Street’s relentless pursuit of profits, other major cryptocurrencies like Solana and Cardano will see a large influx of ETFs. He stated:

Quigley added that Wall Street likes the “next hot new thing” because it allows them to talk to consumers and sell products. However, if this momentum eventually cools down, he expects ETF providers to shift their focus to the next big trend.

Quigley also stated, “We will continue to see new ETFs launched until there is a significant pullback,” and some of these ETFs will be closed by their issuing companies due to insufficient demand.

The approval of Bitcoin spot ETF has sparked huge interest and investment inflows, highlighting the increasing acceptance of digital assets and institutional interest. The success of this investment product paves the way for more cryptocurrency-related financial products, and the market is eagerly awaiting similar developments of other such products. There is particularly high expectation in the market for an Ethereum spot ETF, especially after positive signals from regulatory agencies.

The Ethereum spot ETF received preliminary approval at the end of May, but investors still need to wait for the Securities and Exchange Commission (SEC) to approve the S-1 registration statement submitted by the fund issuer before they can start trading such ETFs. SEC Chairman Gary Gensler stated at a congressional hearing last week that the approval process for the Ethereum spot ETF may be completed by the end of the summer.

Traditional financial intervention in the cryptocurrency field may pose significant risks
Despite bringing more mainstream attention, Quigley expressed dissatisfaction with the increasing intervention of traditional finance in the cryptocurrency field. He stated:

Quigley warned that Wall Street’s aggressive marketing of crypto products could lead to significant risks, especially if institutional investors withdraw during market downturns.

While Quigley remains cautious about Wall Street’s involvement, he acknowledges that a large influx of capital is crucial for the market’s substantial growth. He stated, “If you want a lot of capital, then yes, you have to do things like ETFs.”

Based on past price trends, Bitcoin typically rises in the six months or longer after a halving event as the impact of the halving event begins to show, limiting the expansion of supply. Quigley believes that historical patterns will continue to unfold in this manner.

Quigley believes that the Bitcoin price is not ready to rise yet, “because now is not the time,” but he still predicts a significant increase in price in the future.

Source: Decrypt