Thomas Perfumo, Head of Strategy at crypto exchange Kraken, believes the approval of spot Ethereum (ETH) ETFs could be a game-changer for the cryptocurrency sector. In a recent interview with Bloomberg, Perfumo highlighted the potential benefits of these ETFs, drawing parallels to the impact of similar vehicles on Bitcoin.
Perfumo argues that spot Ethereum ETFs could act as a magnet for new capital, attracting investors who might be hesitant to navigate the complexities of directly acquiring and holding Ethereum. “It’s a rising tide lifts all boats story,” he remarked, suggesting that increased interest in Ethereum ETFs could translate to positive momentum for the broader crypto market.
Ethereum Price Hinges on ETF Approval?
Perfumo went further, suggesting a potential correlation between the approval of spot Ethereum ETFs and the future value of Ethereum itself. He estimates the market is currently “pricing in” significant inflows – $750 million to $1 billion per month – into Ethereum products once ETFs are greenlit. This, according to Perfumo, could propel Ethereum towards its all-time highs of $4,000 to $5,000.
Perfumo contrasted this potential scenario with the recent all-time high reached by Bitcoin in March. He described it as a “quiet peak,” lacking the fanfare and influx of new investors typically associated with such milestones. Spot Ethereum ETFs, by comparison, could provide a more sustained catalyst for growth.
Political Landscape: Bipartisan Support, But Hurdles Remain
Perfumo also weighed in on the political landscape surrounding cryptocurrency regulation in the US. He acknowledged the importance of clear and decisive legislative action, noting recent developments that hint at bipartisan support in Congress.
The recent passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the House, along with attempts to repeal the SEC’s controversial accounting rules, demonstrate a growing willingness to address crypto regulations. However, President Biden’s veto of the resolution highlights the potential roadblocks that still exist.
Also Read: Will Ethereum ETFs Spark a 100x Shiba Inu Rally? Experts Weigh In
Shifting Tides in Political Winds?
Despite the veto, Perfumo remains cautiously optimistic. He sees progress in the growing bipartisan support and a potential shift towards a more crypto-friendly stance within the Republican party. Donald Trump’s plans to attend the Bitcoin Conference in Nashville and his recent pro-crypto pronouncements serve as examples of this evolving sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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