Author: Murtuza Merchant, Decrypt; Translated by: Tao Zhu, Jinse Finance
Tether and WAX co-founder William Quigley said this week that don’t expect crypto ETF momentum to slow down after the U.S. approved spot Bitcoin and Ethereum funds: Wall Street’s “greed” will lead to more and more such products.
Quigley predicts that ETFs for other leading cryptocurrencies, such as Solana and Cardano, will proliferate, driven by Wall Street’s relentless pursuit of profits.
“Wall Street is greedy,” he said. “Whenever Wall Street packages a new product to sell to consumers, if that product is successful, you can guarantee there will be copycats. If the Bitcoin ETF fails, there will be no ETF.”
He added that Wall Street loves the “next hot new thing” because it can engage consumers in conversations and sell their products. But if momentum eventually cools, Quigley expects ETF providers to shift their focus to the next big trend.
“We’re going to continue to see new ETFs launched until we see a big pullback,” he added. “Then you’re going to see some ETFs shut down by the companies that launched them due to lack of demand.”
In January, the Securities and Exchange Commission (SEC) approved the long-awaited spot Bitcoin ETF in the United States, marking an important milestone in the integration of cryptocurrencies into mainstream financial markets. They allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency, providing a more accessible and regulated investment tool.
The approval has sparked significant interest and investment inflows, highlighting the growing acceptance and institutional interest in digital assets.
The success of the Bitcoin ETF has paved the way for further crypto-related financial products, and the market has been eagerly awaiting similar developments in other such products.
Anticipation for Ethereum ETFs is particularly high, especially after positive signals from regulators. The funds received preliminary approval in late May, but will not begin trading until the funds’ S-1 registration forms are approved.
U.S. Securities and Exchange Commission Chairman Gary Gensler said on Thursday that the approval process for an Ethereum ETF could be completed by the end of the summer.
“Individual issuers are still well on their way to completing the registration process, and I expect that to be completed sometime throughout the summer,” Gensler said at a Senate hearing Thursday.
While ETFs have attracted more mainstream attention, Quigley expressed dissatisfaction with traditional finance’s increasing involvement in the cryptocurrency space.
“I’m happy with crypto without Wall Street,” he said. “Will it get smaller? Absolutely. But I don’t think it’s necessary to continue to scale crypto right now.”
He warned that Wall Street’s aggressive marketing of cryptocurrency products could lead to significant risks, especially if institutional investors pull out during a market downturn.
Despite his reservations about Wall Street involvement, Quigley acknowledged that large capital inflows are essential for substantial market growth.
“If you want a lot of capital, then yes, you have to do something like an ETF,” he acknowledged.
While ETF hype partly drove Bitcoin to a new high above $73,700 in March, along with anticipation for the quadrennial halving event in April, BTC has yet to challenge that record again in the months since — with prices falling to just below $67,000 this week.
But Bitcoin’s price typically rises six months or more after a halving, limiting the expansion of supply as the effects of the halving event begin to kick in. Quigley believes the historical pattern will continue along this path.
“It can’t go up any more because now is not the right time,” he said, predicting a sharp rise in prices in the future.
