Can Ethereum ETFs Boost the Crypto Sector?
Thomas Perfumo, the Head of Strategy at Kraken, believes that spot Ethereum (ETH) ETFs could have a positive impact on the crypto sector. He stated that these ETFs could attract capital flows and bring attention to the world of cryptocurrency.
Perfumo described the potential for Ethereum ETFs as a “rising tide, lifts all boat story.” He emphasized that Ethereum’s value in the future could depend on the success of these ETFs in the market.
According to Perfumo, the crypto market is currently anticipating $750 million to $1 billion of net inflows into Ethereum products on a monthly basis. This could push Ethereum’s price to reach all-time highs, potentially between $4,000 and $5,000.
Political Developments and Crypto
Besides discussing the potential impact of Ethereum ETFs, Perfumo also touched upon political developments. He mentioned that the outcomes of the US elections will play a significant role in shaping future policies related to cryptocurrency.
In a comparison to Bitcoin’s previous all-time high in March, Perfumo noted that the market experienced a “quiet peak” without a substantial influx of new investors. This suggests that political decisions and regulations could greatly influence the crypto industry’s trajectory in the coming months.
Legislative Agenda for Crypto in the US
During a recent conference, Senator Perfumo discussed the legislative agenda for the next four years regarding cryptocurrency in the United States. He emphasized the importance of clear legislative action and noted bipartisan support in Congress for the industry.
The House recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21) and attempted to repeal controversial accounting rules by the SEC, along with the Senate. However, President Joe Biden vetoed the resolution, causing a setback.
Despite the challenges faced at the executive level, Perfumo remains optimistic about progress. He mentioned that the Republican party appears to be more supportive of crypto policies, citing Donald Trump’s plans to attend the Bitcoin Conference in Nashville.
Trump has been vocal about his support for pro-crypto policies, making statements during recent campaign events in Wisconsin and San Francisco. The future of cryptocurrency regulation in the US remains uncertain, but there is hope for positive developments in the industry.
