- More analysts are sounding the alarm about the ETH ETF threat to BTC
- However, BlackRock claims that its clients value BTC highly and ETH less.
Ethereums [ETH] potential threat to Bitcoin [BTC] seems inevitable, according to some key industry analysts. One of the analysts, Jim Bianco, highlighted that Ethereum’s recent regulatory relief and the upcoming ETF could prompt ETH to flip BTC before the next halving.
“A really great ETH week. BTC is not dead, but will now have to surf in the wake of ETH’s coming regulatory freedom. Flipping for the next halving?’
Bianco’s comment resonates with that of recent Peter Schiff to take about the risk of ETH ETF for BTC.
Bianco’s Reasons for Bold ETH Flipping BTC Projection
According to Bianco, Ethereum’s full-fledged ecosystem, from lending to staking, meant there were many opportunities for TradFi to take advantage of the platform, unlike BTC.
“Wall Street understands this. It’s a whole ecosystem with borrowing, lending, insurance, tokenomics, staking (yield), stablecoins, NFTS, primitives, L2s, and so on. Enough for them to work with this, instead of hoarding one coin.’
Bitcoin’s L2 ecosystem is not yet fully-fledged, but is moving along the same path through players like Stacks [STX]. However, Bianco claimed that ETF could work against BTC L2, stating:
“My other concern is that the ETF will remove incentives for development because it is easier to HODL in a regulated investment account than in a chain account. At ETH I don’t worry about that so much.’
Most TradFi titans have reiterated their positive arguments for Ethereum. Interestingly, even JPMorgan’s Jamie Dimon, a Bitcoin critic, Reportedly believes Ethereum could have some use cases.
However, BlackRock, the world’s largest asset manager and parent company of the most successful BTC ETF, thinks differently.
In a recent one podcast speaking to Bloomberg, Blackrock’s head of digital assets, Robert Mitchnick, said their clients are “overwhelmingly interested in Bitcoin and a little bit of Ethereum.”
Interestingly, Quinn Thompson, founder of crypto hedge fund Lekker Capital, does so too projected that ETH ETFs could get some inflows from spot BTC ETFs.
It remains to be seen how the ETH ETF development will develop and whether these analysts’ claims are true or just speculation.