Head of Ava Labs, spot market Bitcoin He believes that the approval of the (BTC) exchange-traded fund (ETF) will lead to the launch of similar products for other digital assets.
John Wu, president of Avalanche (AVAX) development firm Ava Labs, said in a new interview with Bloomberg Crypto that the first product to be released following spot market BTC ETF approval Ethereum (ETH) spot market ETF, and other types will follow, he said.
“My prediction is that you will see Ethereum shortly after the Bitcoin ETF. And even better, you will have actively managed ETFs, which are currently a great trend in ETFs, will be actively managed for the crypto asset class, and then there will be things like avalanche and then things like chainlink will enter there and then suddenly in the crypto area It will be a whole index of assets.”
Wu also says he believes the recent Bitcoin rally has been fueled by more favorable macroeconomic conditions for risk assets, as well as anticipation of an ETF approval for Bitcoin next month.
“The market structure has not been fully repaired. “But the reason it’s gone up so much this year is because macro conditions or perception have changed, there’s a ton of liquidity expectation with ETFs entering the space, and I think people are now realizing that the fundamentals of real business use cases are actually happening.”
According to Wu, traditional financial institutions currently sitting on the sidelines will likely pour large amounts of liquidity into Bitcoin ETFs.
“Part of this run highlights the expectation of capability of ETFs. But as I said before, there are people and institutions that won’t be able to buy this until it actually becomes an ETF. So unlike other securities, stocks, commodities, or works of art, they can’t completely preempt the news here because you basically can’t buy it until the actual ETF.”