The momentum of cryptocurrency exchange-traded funds (ETFs) is unlikely to wane following the launch of Ethereum ETFs, as Wall Street’s ‘greed’ will ensure the emergence of new instruments, according to Tether and WAX co-founder William Quigley in a conversation with Decrypt.
In his view, the drive of major financial players for maximum profit will likely lead to the creation of products based on Solana and Cardano.
“Every time Wall Street launches a new tool for consumers and it succeeds, you can be sure imitators will follow. If Bitcoin funds had failed, there would be no other crypto ETFs,” Quigley noted.
He added that the stock market loves “the next hot thing.” However, once interest wanes, management companies will shift to another trendy narrative, he believes.
The market will continue to see new ETF launches until a major pullback occurs, Quigley warned. Then some of these funds will “close due to lack of demand.”
Nonetheless, the entrepreneur acknowledged the success of Bitcoin funds, which paved the way for further cryptocurrency-based products. Despite the increased focus on ETFs, Quigley expressed dissatisfaction with the growing involvement of traditional players in the digital asset sector:
“I was content with cryptocurrency without Wall Street. Maybe the [market size] would have been smaller. But now I wouldn’t feel the need to keep increasing the size of my portfolio.”
He warned that aggressive marketing of crypto products on Wall Street could lead to significant risks, especially if institutional investors exit the market during downturns.
However, Quigley acknowledged the necessity of institutional capital inflows for the industry’s further development.
Regarding the price movement of the first cryptocurrency, the entrepreneur stated that the coin will continue to follow historical patterns.
“Prices can’t go higher because it’s not the right time,” he emphasized, predicting significant growth in the future.
Quigley left Tether in 2015. He was also an early investor in PayPal but no longer holds shares in the company.
At the time of writing, Bitcoin is trading at $66,120, having dropped 5% over the week.
Earlier, Bloomberg analyst Eric Balchunas reported the postponement of the launch date for spot Ethereum ETFs to July 2 following issuers’ receipt of comments on S-1 forms.
Previously, Arthur Hayes and Raoul Pal speculated on the emergence of exchange-traded funds based on Dogecoin.