The cryptocurrency industry seems to be excited and optimistic after the final approval of Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). As investors await the official launch of the investment product, many have been discussing the implications of today’s official launch.
American entrepreneur Anthony Pompliano recently joined CNBC’s Squawk Box to discuss the long-awaited launch and its potential impact on the market. For Pompliano, the ETH ETF story isn’t as “clear-cut” as Bitcoin ETFs, but it will lead to broader adoption in the crypto industry.
Can Ethereum ETFs Compare to Bitcoin ETFs?
On Tuesday, Anthony Pompliano, CEO of Professional Capital Management, discussed the latest breakthrough in the cryptocurrency industry. During an interview with CNBC, the American businessman 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 ETFs have had a huge impact on the industry and its adoption, calling them “historic, probably the best ETF launch in history.” He noted that Bitcoin-based investment products continue to see significant inflows.
“One interesting statistic is that the BlackRock Bitcoin ETF has seen more inflows than QQQ so far this year,” Pompliano said, highlighting that just yesterday, BTC products almost $500 million in inflows.
These numbers raise the question of whether the launch of the second crypto-related ETF will be as big as the first. Bitcoin bulls believe it will not compare to the numbers of the Bitcoin ETF because “people don’t talk about it as much. The media attention, the hype, all that stuff isn’t really there.”
Pompliano believes the reason for the lack of media and public attention is that the story of Ethereum is “not as clear” as that of Bitcoin. “With Bitcoin, the story is clear, it’s digital gold,” he explained, while people discuss Ethereum as a “technology platform” that “faces much more competition.”
All Altcoins Will Come to Wall Street
Despite the “unclear” narrative, the American entrepreneur highlighted that companies like Bitwise have pitched their ETH-based product as a form of diversification. Pompliano believes this narrative could benefit an Ethereum-based investment product because it could attract people who don’t want one crypto-based ETF, but two.
The CEO emphasized that the flows of the newly launched products will not be as “large” as those of Bitcoin. “We were able to see what the flows would be because the story is not clear. You don’t have access to storage, so the cash flow that people love about Ethereum is not available to holders of these ETFs,” he said.
However, Pompliano believes that the approval of ETH ETFs will have a broader impact on the crypto industry. For him, the “interesting” outcome of today’s launch “is less about Ethereum than it is about the rest of the market.”
Today’s launch is believed to bring all altcoins to Wall Street, though 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 opened the door to crypto adoption from “just Bitcoin” to the industry.
So what went from zero to one, “Is it going to be Bitcoin or not?” is now going to be the crypto industry. And the reason this is interesting is that people who have this wallet model or this wallet approach are going to start applying it to all cryptocurrencies.
Ultimately, Pompliano predicted that Ethereum ETFs will have good flow numbers and that the price of Ethereum will rise, “but not as much as people hope 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
