Michael Saylor Claims Ethereum ETF Approval Is Good For Bitcoin

Michael Saylor, MicroStrategy Chairman has expressed that the approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC) is advantageous for Bitcoin. Saylor believes that this approval will attract more institutional investors to the crypto market.

Spot Ethereum ETF To Bring More Investors To Crypto

Saylor shared his perspectives in an interview with Beagle, host of “Bitcoin gamblers anonymous” on X. According to the Bitcoin maxi, the approval of spot Ethereum ETF will give investors more confidence and options to pick and choose.

.@saylor on the Ethereum ETF approval and what the recent crypto regulatory changes mean for Bitcoin pic.twitter.com/jOmM4rRJud

— Beagle (@BeagleBitcoin) May 25, 2024

“I think the approval will legitimize the crypto asset class, supported by both Bitcoin and Ethereum ETFs,” Saylor said. “This move signifies that crypto is now recognized as an asset class, with Bitcoin leading the way.”

Notably, Saylor’s recent stance is seen as a major shift from his earlier position about any digital asset that is not Bitcoin. On X, following Saylor’s failed prediction against spot Ethereum ETF approval, many users trolled him.  The anger by the online community was Saylor’s categorization of Ethereum as a security just days to the SEC’s decision.

In what some consider as an “ego check,” Saylor emphasized that the approval of Ethereum’s ETF will enhance Bitcoin’s position within the crypto industry.

“It is good for Bitcoin. We are much more powerful when supported by the entire crypto industry. Ethereum, with its vast user base, provides another layer of defense for Bitcoin.”

Accelerating Institutional Adoption

He also noted that mainstream investors might begin to see crypto as a viable asset class. As such, it can fuel a potential allocation of 5% to 10% of their portfolios to crypto. Of this, a significant portion, around 60% to 70%, going to Bitcoin.

The projections by Michael Saylor on asset allocation are based on prevailing market dynamics. Recently, the spot Bitcoin ETF market witnessed significant investor activity, marked by consistent net inflows and notable performances from major ETFs. The total inflows surpassed 15,000 BTC.

As per the spot Ethereum ETF approval, Saylor concluded that it was good overall for the market.

“I think this will accelerate institutional adoption and serve as a strong marketing boost,” Saylor added. “It’s a new era, and we need to rethink our models to align with this evolving landscape.”

Read More: Yuga Labs Co-Founder Unveils Key Projects Ahead For Bored Ape Franchise