Sergei Nazarov, co-founder of Chainlink expressed optimism about the future of the crypto industry. In particular, he expects the space to progress through the introduction of more crypto exchange-traded funds (ETFs)which he believes will happen soon.
More crypto ETFs launching soon
In a interview with Cointelegraph at the Token2049 event in Dubai, Nazarov mentioned that more ETFs are linked to other coins in addition Bitcoin and Ethereum would be launched soon enough. According to him, this could happen as early as this year, with these crypto ETFs likely to continue to grow over the years.
Ripple CEO Brad Garlinghouse also expressed a similar sentiment, stating that he “thinks there will be other ETFs.” However, unlike Nazarov, he does not seem optimistic that it will happen this year. Garlinghouse added that it could take “a little while” to launch other crypto ETFs due to the Securities and Exchange Commission (SEC) reserves on crypto assets.
Cathie Wood, CEO of Ark Invest, shares a completely different opinion, as she once predicted that there would likely only be Bitcoin and Ethereum Spot ETFs in the United States. At the time, she mentioned that it would be surprising to see “anything but Bitcoin and Ether get approved by the SEC,” perhaps because those are the only crypto tokens recognized by the Commission.
Meanwhile, industry experts like James Seyffart, analyst at Bloomberg have hinted at what needs to happen if other crypto tokens, besides Bitcoin and Ethereum, are to have their ETFs. Specifically, while discussing a potential XRP ETF, he mentioned that the crypto token must first be traded on a regulated market like the Chicago Mercantile Exchange (CME).
Bitcoin is now trading at $63.602. Chart: TradingView
How other crypto ETFs could grow the industry
THE Spotting Bitcoin ETFs are a clear example of the impact these crypto ETFs could have on the broader crypto market and related tokens in particular. These ETFs can help inject new money into the ecosystem of these crypto tokens, leading to a massive increase in liquidity and possibly an increase in cryptocurrency prices.
While explaining how XRP could reach $1,000, crypto analyst BarriC to have a reference to to the way in which institutional demand for the cryptographic token, via a XRP ETFcould push its price to such heights.
Additionally, as Hannah Phung, Lead Analyst at On-Chain Analytics Platform SpotOnChain, suggested, crypto ETFs could make the crypto market more mature. This is because more institutional investors, seen as longer-term investors, will enter this sector and help reduce market volatility.
In the meantime, the crypto community will wait to see if the SEC approves the wait Spotting Ethereum ETF Applications as this could determine the fate of other potential crypto ETFs.
Featured image from Pexels, chart from TradingView
