Will Ethereum Surge Like Bitcoin After ETF Approval?

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Georgi Shopov
26 March, 2024, 15:00
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BitMEX Founder Arthur Hayes Predicts Ethereum's Surge Amid ETF Speculation

Arthur Hayes, the co-founder of BitMEX crypto derivatives exchange, has offered his insights on Ethereum (ETH) in the wake of the approval and subsequent listing of spot Bitcoin (BTC) exchange-traded funds (ETFs), which occurred less than three months ago.

In an exclusive interview with The Wolf of All Streets, Hayes shared his anticipation of heightened demand for Ethereum, particularly if the U.S. Securities and Exchange Commission (SEC) greenlights applications for spot ETH ETFs.

"I think ETH is going to catch a really big bid, especially if these ETFs are going to pass," Hayes remarked. He emphasized the significant financial impact of ETF launches on various assets, drawing parallels with established ETFs like the Invesco QQQ ETF and the SPDR S&P 500 ETF Trust (SPY), which track major indices such as the Nasdaq 100 and the S&P 500, respectively.

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Hayes highlighted the immense profitability potential of ETFs for cryptocurrencies beyond Bitcoin, including Ethereum and Solana. He emphasized the unprecedented scale of these ETF launches, surpassing even established ETFs like SPY and QQQ.

"The mother*****s are raking in AUM (assets under management), and some of these guys aren’t charging fees… So if this is Bitcoin, why not Ethereum, why not Solana, why not any of them?" Hayes pondered, underscoring the potential for widespread adoption of ETFs across various crypto assets.

According to Hayes, the approval of spot ETFs for crypto assets beyond Bitcoin may hinge on the influence of banks. He noted that banks wield significant power in major jurisdictions and could play a pivotal role in the approval process, particularly if they stand to profit from these products.

"And guess what, now you can have a product traded that you as a bank earn fees on? There’s no way that these ETFs don’t get approved… The banks run everything in every single major jurisdiction. And so if the banks want to make money on these things, they will have them," Hayes explained, highlighting the potential alignment of banking interests with the approval of crypto ETFs.

In essence, Hayes' outlook underscores the growing anticipation surrounding the potential approval of Ethereum ETFs and other crypto assets, fueled by the success of Bitcoin ETFs and the influence of financial institutions in shaping regulatory decisions. As the crypto landscape continues to evolve, the approval of ETFs could mark a significant milestone in mainstream adoption and investment in digital assets beyond Bitcoin.