Tether stablecoin issuer and co-founder of the WAX blockchain, William Quigley, stated in an interview with Decrypt last week that the “greed” on Wall Street will bring more and more cryptocurrency spot ETFs. However, he also warned that while Wall Street’s interest is driving the development of the entire cryptocurrency market, it also brings risks.
Quigley predicted that under Wall Street’s relentless pursuit of profits, ETFs for other major cryptocurrencies like Solana and Cardano will emerge in large numbers. He stated:
Quigley added that Wall Street likes the “next hot new thing” because it is something they can talk to consumers about and sell products. But if this momentum eventually cools down, he expects ETF providers to shift their focus to the next big trend.
Quigley also stated, “We will continue to see new ETFs launched until there is a significant pullback,” and some of these ETFs will be closed by their issuing companies due to insufficient demand.
The approval of a Bitcoin spot ETF has sparked tremendous interest and investment inflows, highlighting the increasing acceptance of digital assets and institutional interest. The success of this investment product paves the way for more cryptocurrency-related financial products, and the market has been eagerly anticipating similar developments. Expectations for an Ethereum spot ETF are particularly high, especially after regulatory agencies issued positive signals.
The Ethereum spot ETF received preliminary approval at the end of May, but investors still need to wait for the Securities and Exchange Commission (SEC) to approve the S-1 registration statement submitted by the fund issuer before trading such ETFs can begin. SEC Chairman Gary Gensler stated at a congressional hearing last week that the approval process for the Ethereum spot ETF may be completed by the end of summer.
Traditional financial intervention in the crypto sector may pose significant risks
While ETFs bring more mainstream attention, Quigley is unhappy with the increasing intervention of traditional finance in the cryptocurrency sector. He stated:
Quigley warned that Wall Street’s aggressive marketing of crypto products could pose significant risks, especially if institutional investors withdraw during market downturns.
Despite Quigley’s reservations about Wall Street’s involvement, he acknowledged that a significant influx of capital is crucial for the market’s substantial growth. He stated, “If you want large amounts of capital, then yes, you have to do things like ETFs.”
Based on past price trends, Bitcoin usually rises in the six months or longer after a halving event, as the impact of the halving event begins to show, limiting the expansion of supply. Quigley believes that historical patterns will continue to develop along this path.
Quigley believes that the price of Bitcoin will not rise yet, “because it’s not time yet,” but he still predicts a significant increase in the future price.