Stablecoin issuer Tether and co-founder of WAX blockchain, William Quigley, in an interview with Decrypt last week, stated that Wall Street’s “greed” will bring more and more cryptocurrency spot ETFs. However, he also cautioned that while Wall Street’s interest has driven the development of the entire cryptocurrency market, it also brings risks.
Quigley predicted that with Wall Street’s relentless pursuit of profits, ETFs for other major cryptocurrencies like Solana and Cardano will emerge in large numbers. He stated:
Quigley added that Wall Street likes the “next hot new thing” because it gives them something to talk to consumers about and sell products. But if this momentum eventually cools off, he expects ETF providers to shift their focus to the next big trend.
Quigley also stated, “We will continue to see new ETFs launched until there is a significant pullback,” and some of these ETFs will be closed by their issuing companies due to lack of demand.
The approval of the Bitcoin spot ETF has sparked huge interest and investment inflows, highlighting the increasing acceptance of digital assets and institutional interest. The success of this investment product paves the way for more cryptocurrency-related financial products, and the market eagerly awaits similar developments for other such products. Expectations for the Ethereum spot ETF are particularly high, especially after regulatory agencies issued positive signals.
The Ethereum spot ETF received preliminary approval at the end of May, but investors still need to wait for the Securities and Exchange Commission (SEC) to approve the S-1 registration statement submitted by the fund issuer before trading such ETFs can begin. SEC Chairman Gary Gensler stated during a congressional hearing last week that the approval process for the Ethereum spot ETF may be completed by the end of summer.
Traditional financial intervention in the crypto space may pose significant risks
Despite bringing more mainstream attention, Quigley expressed dissatisfaction with the increasing intervention of traditional finance in the cryptocurrency space. He said:
Quigley warned that Wall Street’s aggressive marketing of cryptocurrency products could lead to significant risks, especially if institutional investors withdraw during market downturns.
While Quigley remains cautious about Wall Street’s involvement, he acknowledges that a large influx of capital is crucial for the market’s significant growth. He stated, “If you want a lot of capital, then yes, you have to do things like ETFs.”
Based on past price trends, Bitcoin typically rises in the six months or longer after a halving event as the event’s impact begins to show, limiting the expansion of supply. Quigley believes that historical patterns will continue to develop along this path.
Quigley believes that the Bitcoin price will not rise yet, “because it’s not the time yet,” but he still predicts a significant increase in future prices.
