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Ethereum ETFs “Good For Bitcoin” Says Michael Saylor: Will MicroStrategy Now Get Involved With ETH?

Last Updated May 27, 2024 12:39 PM
Teuta Franjkovic
Last Updated May 27, 2024 12:39 PM

Key Takeaways

  • Bitcoin maximalist Michael Saylor now sees Ethereum ETFs as positive for Bitcoin.
  • MicroStrategy, a major Bitcoin investor, may add Ethereum to its holdings.
  • Ethereum ETFs could boost institutional crypto adoption, with Bitcoin leading the way.

MicroStrategy founder Michael Saylor has shifted his stance on spot Ethereum ETFs, suggesting that the recent approval by US regulators also bodes well for Bitcoin.

According to sources,  MicroStrategy is broadening its cryptocurrency portfolio by contemplating  an investment in Ethereum. This marks a significant strategic shift for the American business intelligence firm.

Saylor Foresees BTC Boost in Institutional Adoption

During the May 25 episode  of the “What Bitcoin Did” podcast, Saylor claimed the Ethereum ETF was good for Bitcoin.

He said :

“Is this good for Bitcoin or not? Yeah, I think it’s good for Bitcoin; in fact, I think it may be better for Bitcoin because I think that we are politically much more powerful and supported by the entire crypto industry.”

Following the US Securities and Exchange Commission (SEC) ‘s (May 23) approval of eight spot Ether ETFs, Michael Saylor commented that these approvals act as an additional line of defense for Bitcoin.

Saylor emphasized that this development would “accelerate institutional adoption,” as investors previously hesitant about cryptocurrency will now view it as a legitimate asset class.

He also noted that while capital will be allocated across various crypto assets, Bitcoin will continue to receive the majority of this capital, maintaining its status as “the leader” of cryptocurrencies.

Saylor said :

“I think mainstream investors will say “oh, there is a crypto asset class now. “Maybe we’ll allocate 5% or 10% to the crypto asset class, but Bitcoin will be 60% or 70% of that”.”

Saylor acknowledged that his opinion on spot Ether ETFs had changed. He previously believed there was little chance of SEC approval.

He said :

“Two weeks before, the world looked like Bitcoin was going to be the only asset securitized and offered as a spot ETF by the Wall Street establishment and it was going to spread as the one legitimate crypto asset.”

Revising Stance on Ethereum Amidst SEC Security Speculation

Just few weeks ago, Saylor predicted  the SEC would classify Ethereum (ETH) as a security, followed by Binance Coin (BNB), Solana (SOL), XRP, and Cardano (ADA) being viewed similarly.

He said :

“None of [these tokens] will ever be wrapped by a spot ETF. None of them will be accepted by Wall Street. None of them will be accepted by mainstream institutional investors as crypto assets.”

His shift in opinion on the “What Bitcoin Did” podcast caught the attention of the broader crypto community.

Bitcoin commercial litigator Joe Carlasare said : “Changing his tune a bit.”

rypto analyst Ricky Bobbyy added : “Is the next step Saylor buying ETH? That’s a serious 180.”

Will MicroStrategy Add Ethereum to Its Crypto Portfolio?

Despite worries about potential dilution of focus, reliable sources  confirm that MicroStrategy’s interest in Ethereum will not affect its ongoing Bitcoin strategy. Under the leadership of its founder, Michael Saylor, the firm wants to continue growing its Bitcoin holdings.

Indeed, the company recently announced plans to raise $600 million through convertible debt in a private offering.

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