Michael Saylor Says Ethereum ETF Approvals Are Good for Bitcoin

Last updated: May 27, 2024 4:53 pm EDT | 2 minutes of reading

Michael Saylor. Source: a screenshot of the video, Natalie Brunell/YouTube

The recent approval of Ethereum spot ETFs is a positive outcome for Bitcoin adoption, according to MicroStrategy Executive Chairman Michael Saylor, who appeared on the What Bitcoin Did podcast last week.

The billionaire Bitcoin investor has long advocated Bitcoin as the best cryptographic asset for storing value and assumed that no other asset would gain regulatory legitimacy in the United States. However, recent developments have proven that the country’s leadership is moving in a more industry-friendly direction.

Michael Saylor wrong about Ethereum ETFs

“I think at this point the best expectation is that the crypto asset class will be legitimized, supported by both parties,” he said Saylor during the interview. “There are many things that will be considered in a more open way, and Bitcoin will be the leader of the crypto asset class.”

Saylor’s new prediction differs starkly from his comments during MicroStrategy World earlier this month, during which he said that Ether, the second-largest cryptocurrency, “will not be approved” by regulators and would soon be classified as an unregistered security.

“It will never be involved in a spot ETF. It will never be accepted by Wall Street or institutional investors,” he said at the time. “Bitcoin is the only universally accepted institutional-grade crypto asset. There will be no other.”

ETF experts at Bloomberg also attributed a low probability of Ether ETF approvals until early last week, when regulators suddenly began engaging with issuers on their applications after months of radio silence. On Thursday, the agency approved grants to list the funds, which legal experts also say certifies Ether as non-security.

Changing Political Winds in Crypto

Saylor believes that a combination of political developments in May led to the Securities and Exchange Commission’s (SEC) change in stance, along with that of the Biden administration.

First, the House and Senate passed legislation with bipartisan support to allow banks in the U.S. to offer crypto custody services.

After that, the House of Representatives approved FIT21a comprehensive bill that provides a legal framework for issuers and crypto companies to operate legally.

Additionally, former President Donald Trump came out in full support to protect citizens’ rights to hold crypto if they are re-elected, promising to overturn the Democratic Party’s most hostile stance.

“I think it’s good for Bitcoin – in fact, it could be even better for Bitcoin because I think we are much more powerful with the support of the entire crypto industry,” said Saylor. “In fact, I think it could accelerate institutional adoption.”

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