The cryptocurrency community was taken by surprise when the U.S. Securities and Exchange Commission (SEC) granted preliminary clearance for the Ethereum spot ETF in May. The Wolf of All Streets podcast host Scott Melker spoke with investor Brock Pierce to provide more insight into this development. They discussed the consequences of this approval for Ethereum and the larger cryptocurrency market, which shed light on those issues.
Pierce told TheStreet Crypto, “He didn’t think Ethereum was going to get approved.” He said, “We’ve gone beyond just bitcoin, and that’s already a major event. Pierce stated that although the Ethereum spot ETF has a good chance of succeeding, it might not soar as high as bitcoin. He clarified that this product appeals to the typical individual investor as well as institutions who could not otherwise have access to it due to charter. Everything begins with bitcoin, so after learning about it, you may start examining the market and figuring out what comes next, which is ethereum.
Pierce advised against using the market caps of bitcoin and Ethereum to evaluate the performance of the ETF and instead recommended comparing them. Pierce highlighted the wider ramifications for the cryptocurrency sector, including the possible acceptance of other digital assets like Solana, and stated, “For Ethereum and the rest of the industry, it’s phenomenal news for all of us.”
Melker emphasized that comparable Ethereum products are available elsewhere in the world, giving its performance in the US a standard. Spot ether ETFs should see inflows of about $15 billion in the first 18 months, according to Bitwise Chief Investment Officer Matt Hougan. Pierce acknowledged the specific characteristics of the American market and the significance of prospective catalyst events, like Ethereum 2.0, even though he agreed with this thesis.
The topic of competition among Ethereum spot ETFs was then brought up. Until VanEck recently announced that there would be no fees on their Ethereum spot ETF, Melker observed that there had been no conversations about fees. Pierce applauded this action, saying, “This competition is good for the market,” adding that VanEck is willing to operate at no cost until they have 1.2 billion or 1.5 billion in Ethereum before considering the possibility of charging a 20 basis point fee.
