Joseph Lubin, the co-founder of Ethereum and CEO of Consensys, is optimistic about the massive influx of capital waiting on the sidelines for the introduction of crypto exchange-traded funds (ETFs). In a recent chat with CNBC, Lubin shared insights into the substantial amount of money, possibly in the hundreds of billions, held by professionals in traditional finance eagerly awaiting regulated exposure to digital assets through ETFs.
According to Lubin, registered investment advisors (RIAs) managing funds such as retirement funds and companies are keen on gaining easier access to the technology and exposure to uncorrelated digital asset classes. Speculators within the crypto industry anticipated a surge in Bitcoin prices in anticipation of these ETFs, and there’s a hopeful expectation for an Ethereum ETF soon. The key takeaway? There’s a significant pool of money, totaling hundreds of billions of dollars, ready to enter and explore the potential of this asset class.
While acknowledging that the SEC doesn’t explicitly communicate its plans to the Ethereum Foundation, Lubin sees Ethereum (ETH) as a strong contender for the next ETF approval after Bitcoin. He points out that Ethereum boasts arguably the most mature and deep ecosystem globally, serving as a robust platform for decentralized applications. While Bitcoin is a more focused technology, it remains reasonably mature. Lubin identifies Ethereum and Bitcoin as prime candidates for ETF approval, emphasizing Ethereum’s broader ecosystem compared to more nascent technologies like Solana, which, although great, is not as mature.