Profit-Driven Wall Street Eyes More Crypto ETFs, Tether Co-Founder Foretells Following Bitcoin and Ethereum

Wall Street’s increasing involvement in the cryptocurrency market has been a major catalyst for its growth. However, William Quigley, co-founder of Tether and WAX, warns of potential risks. In a recent interview with Decrypt, Quigley discussed the future of Crypto ETFs, the role of Wall Street, and the implications for the broader market.

Wall Street’s Drive for Profit

Quigley predicts that Wall Street’s relentless pursuit of profit will lead to the creation of ETFs for other major cryptocurrencies like Solana and Cardano. “Wall Street is driven by profit,” he said. “Every successful product that Wall Street designs and introduces to consumers has its replicas. If the Bitcoin ETF had flopped, there would be no subsequent ETFs.”

The Trend-Driven Market

Wall Street’s love for the “latest and greatest” trends helps engage customers and market its offerings. Quigley believes that as long as the market continues to surge, new ETFs will keep launching. However, he cautions that in the event of a major downturn, those ETFs may be phased out due to insufficient demand. “As long as the market continues to surge, the launch of new ETFs will follow,” he explained. “However, once a major downturn hits, those ETFs will be phased out by their originating firms due to insufficient demand.”

The SEC’s Milestone Approval

The SEC’s approval of spot Bitcoin ETFs in January marked a revolutionary step in integrating cryptocurrencies into mainstream financial markets. This approval provided investors with a regulated and accessible way to gain exposure to Bitcoin without holding it directly. The successful implementation of the Bitcoin ETF has sparked considerable interest and capital influx, paving the way for more cryptocurrency-related financial products.

Ethereum ETFs on the Horizon

The anticipation for Ethereum ETFs is especially high, buoyed by positive signals from regulatory authorities. These funds received preliminary approval in late May, but trading will only commence after the approval of the funds’ S-1 registration forms. SEC Chairman Gary Gensler hinted that Ethereum ETFs might be approved by the end of summer. “While the registration process is moving along smoothly, issuers are still going through it. I foresee this being resolved over the coming summer months,” Gensler mentioned during a Senate hearing last Thursday.

Concerns Over Mainstream Attention

Despite the excitement, Quigley expressed concerns about the increasing mainstream attention on ETFs. He worries about the growing involvement of traditional financiers in the crypto sphere. “I was content with crypto functioning without Wall Street,” he said. “Sure, it wouldn’t be as large, but I never felt the urgency to keep enlarging the crypto market.” He warned that aggressive promotion of crypto offerings by Wall Street could lead to significant risks, particularly if institutional investors withdraw during market downturns.

The Need for Capital Influx

Despite his reservations, Quigley acknowledged that a major capital influx is necessary for significant market growth. “ETFs become necessary if you’re looking for a huge capital influx,” he admitted.

Bitcoin’s Price Trends

The ETF trend contributed to Bitcoin reaching a new peak of over $73,700 in March, driven by excitement around the quadrennial halving event in April. Currently valued under $67,000, Bitcoin’s price typically rises approximately six months post-halving due to constrained supply effects. Quigley expects this historical pattern to continue. “There isn’t a surge because it’s not the right time yet,” he said, predicting a significant price increase in the future.

Conclusion

The rise of crypto ETFs, driven by Wall Street’s profit motives, presents both opportunities and challenges for the cryptocurrency market. While these financial products offer greater accessibility and regulation, they also introduce new risks, especially during market downturns. As the market evolves, finding a balance between innovation and stability will be crucial for the future trajectory of cryptocurrencies.

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