Sergey Nazarov, co-founder of Chainlink (LINK), believes that the U.S. Securities and Exchange Commission (SEC) will not stop with just Ethereum (ETH) when it comes to approving exchange-traded funds (ETFs) for crypto assets. Last week, the SEC approved form 19b-4 filings from several major financial institutions, paving the way for spot Ethereum ETFs in the U.S. Nazarov sees this as a sign that the regulator will eventually approve ETF offerings for other cryptocurrencies as well.
According to Nazarov, the launch of the ETH ETF demonstrates a fundamental assumption – that Bitcoin ETFs will not be the only way for institutional investors and consumers to access cryptocurrencies through traditional financial market vehicles. He believes that just like many systems and protocols initially listed Bitcoin and ETH, more tokens will eventually be included in ETF offerings.
Earlier this year, Nazarov referred to the launch of spot Bitcoin ETFs as a “watershed moment” for the industry, suggesting that it could lead to a significant influx of capital from the global finance sector. He explained that historically, new buyers have driven adoption and market cycles, and in this cycle, the global financial system is the group of net new buyers. The Bitcoin ETF provides a way for these buyers to invest in cryptocurrencies and Bitcoin within structures that they find comfortable and within their risk tolerance.
It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where this article was originally published, does not recommend buying or selling any cryptocurrencies or digital assets, and it is not an investment advisor.
