Michael Saylor Highlights Ethereum-ETF’s Advantage for Bitcoin

The approval of SEC spot Ethereum-ETFs creates “another line of defense for Bitcoin,” according to MicroStrategy founder Michael Saylor in Peter McCormack’s podcast What Bitcoin Did.

“Is this good for Bitcoin? Yes, I think it’s good for Bitcoin, […] because politically we are much stronger with the support of the entire crypto industry,” Saylor explained.

According to him, the launch of spot Ethereum-ETFs “will accelerate institutional adoption,” as previously cautious investors will now recognize cryptocurrencies as a legitimate asset class.

The MicroStrategy founder noted that they will allocate capital among various digital currencies, but Bitcoin will still receive the majority as the “leader.”

“I think major investors will say, […] maybe we’ll allocate 5% or 10% to the crypto asset class, but Bitcoin will make up 60% or 70% of that,” Saylor emphasized.

Analysts Expect Modest Demand for ETH-ETF

Bloomberg analyst James Seyffart predicted demand for ETH-ETF at 20-25% of spot exchange-traded funds based on the first cryptocurrency, as reported by CryptoSlate.

The forecast is based on the Ethereum market being about 30% of Bitcoin. Additionally, investors have lost the option of staking and access to on-chain capabilities of the second-largest cryptocurrency by market capitalization.

“The gap between Ethereum-ETF and Ethereum itself is slightly wider than between Bitcoin and Bitcoin-ETF,” the analyst noted.

According to Seyffart, his colleague Eric Balchunas estimated potential demand for ETH-ETF even lower—at 15-20% of a similar Bitcoin-based instrument.

Experts Predict ETF Based on “Basket of Crypto Tokens”

Analysts from investment bank TD Cowen called the SEC’s decision on ETH-ETF “inevitable” and predicted exchange-traded funds based on a “basket of crypto tokens” within a year, as reported by The Block.

“This is happening about six months faster than we expected, but this decision was also inevitable since the SEC approved cryptocurrency futures ETFs,” wrote researcher Jaret Seiberg.

TD Cowen specialists believe that the SEC will maintain a Democratic majority until 2026 and continue to oppose crypto companies trading tokens that the Commission considers unregistered securities.

In May, the SEC approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum. Trading will commence once the agency signs the registration statements on Form S-1.

Standard Chartered’s head of research, Geoffrey Kendrick, suggested a new phase for exchange-traded funds in 2025. In his view, SOL and XRP are next in line.

Matrixport co-founder Daniel Yan also named Solana as a new contender for launching exchange-traded funds.