The president of Ava Labs, the team behind layer-1 blockchain Avalanche (AVAX), says that he’s optimistic about Ethereum (ETH)-based exchange-traded funds (ETFs).
In a new interview with Bloomberg Television, Ava Labs president John Wu says that over time, Ethereum ETFs will find success due to the competitive nature of the decentralized finance (DeFi) sector.
“I don’t think anyone anticipated [the] Ethereum ETF to be as successful as the Bitcoin ETF was, but in reality, Bitcoin really has just one competitor – that’s gold. Ethereum is about utility and creating use cases.
They actually have many, many competitors, from Avalanche to Solana to a whole bunch of others. And so you have a situation where the supply – because it’s an earned proof-of-stake model – is increasing and yet transactions are just kind of steady.
So there’s a little bit of imbalance, but I am very positive that over time it is still in a pull position and has a chance to allow others to get into the space.”
Yu goes on to highlight the macroeconomic trends that lead him to be “very positive” toward the future of the digital assets industry.
“What I care about is that you see more adoption and this space really has three components that drive it. One is the macro level… Every central bank is lowering rates.
The fact that there is an ETF for Ethereum and Bitcoin will create more access. So that’s ultimately positive. Morgan Stanley is going to let their RIAs (registered investment advisors) now sell the Bitcoin ETF. So that’s definitely a positive.
And I think what people don’t realize is the adoption on network and in this space is actually growing a lot. If you look at wallets, look at addresses, it’s there. So I’m very positive going forward.”
ETH-based ETFs, which give investors exposure to ETH without the need to directly purchase the asset, were approved earlier this year by the U.S. Securities and Exchange Commission (SEC).
Ethereum is trading for $2,468 at time of writing, a 3.3% decrease during the last 24 hours.
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Mehron Rokhy
https://dailyhodl.com/2024/08/28/ava-labs-president-john-wu-very-positive-on-ethereum-etfs-heres-why/
2024-08-28 19:55:44
