Chainlink Co-Founder Says More Crypto ETFs To Come, Ethereum And Dogecoin Next?
Chainlink co-founder Sergey Nazarov has expressed optimism about the future of the crypto industry. One way he expects the space to progress is through the introduction of more crypto exchange-traded funds (ETFs), which he believes will happen soon.
More Crypto ETFs To Launch Soon
In an interview with Cointelegraph at the Token2049 event in Dubai, Nazarov mentioned that more ETFs related to other coins besides Bitcoin and Ethereum would launch soon enough. According to him, this could happen as early as this year, with these crypto ETFs likely to keep growing over the years.
Ripple’s CEO Brad Garlinghouse also expressed a similar sentiment, stating that he “thinks there will be other ETFs.” However, unlike Nazarov, he didn’t sound optimistic about that happening this year. Garlinghouse added that launching other crypto ETFs could take “a little bit of time” because of the Securities and Exchange Commission’s (SEC) reservations about crypto assets.
Ark Invest’s CEO Cathie Wood shares an entirely different opinion, as she once predicted that there would only likely be Bitcoin and Ethereum Spot ETFs in the US. Back then, she mentioned that it would be surprising to see “anything but Bitcoin and Ether being approved by the SEC,” possibly because those are the only crypto tokens the Commission recognizes.
Meanwhile, industry experts like Bloomberg’s analyst James Seyffart 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 Spot Bitcoin ETFs are a clear example of the impact these crypto ETFs could have on the broader crypto market and the tokens linked to it 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 raising crypto prices.
While explaining how XRP could rise to $1,000, crypto analyst BarriC alluded to how institutional demand for the crypto token, through an XRP ETF, could cause its price to reach such heights.
Furthermore, as Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, suggested, crypto ETFs could make the crypto market more mature. This is because more institutional investors, who are considered more long-term investors, will enter the space and help reduce market volatility.
In the meantime, the crypto community will wait to see whether or not the SEC approves the pending Spot Ethereum ETF applications as that could determine the fate of other potential crypto ETFs.
Featured image from Pexels, chart from TradingView
