Tether Co-founder Prediction: Who will be the next ETF?

Author: Murtuza Merchant, Decrypt; Compiler: Tao Zhu, Golden Finance

Tether and WAX co-founder William Quigley pointed out this week that don’t expect the momentum of crypto ETFs to slow down after the U.S. approved spot Bitcoin and Ethereum funds: Wall Street’s “greed” will bring more and more such products.

Quigley predicts that ETFs for other leading cryptocurrencies (such as Solana and Cardano) will surge, driven by Wall Street’s relentless pursuit of profits.

“Wall Street is greedy,” he said. "Whenever Wall Street packages a new product to sell to consumers, if that product is successful, you can guarantee there will be copycats. If the Bitcoin ETF fails, there won't be an ETF."

Wall Street loves the "next hot new thing" because it can talk to consumers about and sell their products, he added. But if momentum eventually cools, Quigley expects ETF providers to shift their focus to the next big trend.

"We will continue to see new ETFs launched until we see a big pullback," he added. "Then you'll see some ETFs being shut down by the companies that launched them due to lack of demand."

In January, the U.S. Securities and Exchange Commission (SEC) approved the country's long-awaited spot Bitcoin ETF, marking a major milestone in the integration of cryptocurrencies into mainstream financial markets. They allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency, providing a more accessible and regulated investment vehicle.

The approval has generated significant interest and investment inflows, highlighting the growing acceptance and institutional interest in digital assets.

The success of the Bitcoin ETF paves the way for further crypto-related financial products, and the market has been eagerly awaiting similar developments for other such products.

Anticipation is particularly high for Ethereum ETFs, especially following positive signals from regulators. The funds received preliminary approval in late May, but will not begin trading until the funds' S-1 registration forms are approved.

SEC Chairman Gary Gensler said Thursday that the approval process for Ethereum ETFs could be completed by the end of the summer.

"Individual issuers are still well on their way to completing the registration process, and I expect that to be completed sometime throughout the summer," Gensler said at a Senate hearing on Thursday.

While ETFs are attracting more mainstream attention, Quigley expressed dissatisfaction with traditional finance’s growing involvement in the cryptocurrency space.

“I’d be happy with crypto without Wall Street,” he said. “Would it be smaller? Sure. But I don’t feel the need to continue to scale crypto right now.”

He warned that aggressive marketing of cryptocurrency products by Wall Street could lead to significant risks, especially if institutional investors exit during a market downturn.

Despite his reservations about Wall Street’s involvement, Quigley acknowledged that large capital inflows are essential for significant market growth.

“If you want large amounts of capital, then yes, you have to do something like an ETF,” he acknowledged.

While ETF hype helped propel Bitcoin to a new high above $73,700 in March, amid anticipation for the quadrennial halving event in April, BTC has yet to challenge that record again in the months since — with prices dropping to just under $67,000 this week.

But Bitcoin’s price typically rises six months or more after a halving, which limits the expansion of supply as the effects of the halving event begin to take hold. Quigley believes the historical pattern will continue along that path, too.

“It can’t go up anymore because it’s not time yet,” he said, predicting a big price rally ahead.