The impact of the Ethereum spot ETF on the crypto ecosystem (Part 2)

Source: Daoshuo Blockchain

In yesterday's article, we talked about how Wall Street's traditional capital will eventually cover the entire entry and exit of crypto assets to fiat currency (US dollars) and try to control the pricing power of all mainstream crypto assets (through financial instruments such as spot ETFs).

But are the giants only satisfied with the layout of existing crypto assets?

I think their appetite is much bigger than this. They will eventually personally come out and issue assets on their own---------You newcomers can play this trick, so how can we old players lose to you?

Specifically, how will they do it?

I think they will issue their own assets by comprehensively deploying infrastructure and application fields.

If you carefully observe the process of institutions submitting Bitcoin and Ethereum spot ETF applications to the SEC, you will find that although many institutions have submitted their own applications, it is obvious that the institutions have obvious differences in their attitudes towards Bitcoin and Ethereum.

Two companies are particularly obvious in this regard: Grayscale and BlackRock.

In a previous article, I shared with you an article that Grayscale wrote recently. In the article, Grayscale's main focus is Bitcoin, and even the inscription ecosystem has a special description. You have to know that at that time, not to mention institutional investors, even among retail investors, the popularity of inscriptions was still limited.

And what about BlackRock?

Its focus is more on Ethereum.

The president of BlackRock made such a statement a while ago, to the effect that even if the Ethereum spot ETF is not passed, it will not affect their attention to the Ethereum ecosystem. He has also stated on many occasions in public that he will explore some application scenarios on Ethereum: such as RWA.

Compared with the two companies, Grayscale's style is closer to the crypto ecosystem, while BlackRock's style has a clear traditional business atmosphere. But Grayscale's size is obviously not comparable to BlackRock. Once BlackRock really starts to exert its strength, its influence will quickly surpass Grayscale.

So I estimate that the influence of traditional institutions on the crypto ecosystem will increasingly tend to BlackRock's style in the future.

From BlackRock's background, it is clear that it cares more about the commercial benefits and practical uses that blockchain technology can bring. At present, Ethereum is the first blockchain platform that is both safe and reliable and has complete technical functions. And the existing performance of the Ethereum ecosystem can fully support the RWA market that BlackRock is concerned about.

So I think traditional Wall Street institutions like BlackRock will soon personally take charge of two areas at the same time:

One is the infrastructure in the blockchain field; the other is the application projects on the blockchain platform.

I think the blockchain infrastructure here is most likely Ethereum's second-layer expansion.

These institutions either cooperate with some existing second-layer expansion projects, directly hold their tokens, and exert their influence on these projects to turn these second-layer expansions into their own "reserves"; or they personally find a team to make a second-layer expansion dedicated to their own application scenarios.

When they have infrastructure that serves them, the next step is to deploy their easiest and most familiar business on it: RWA.

In this way, they can break through the barriers between off-chain finance and on-chain finance and open up their own new business areas and profit models.

In this process, they will certainly issue various tokens based on their own needs: some may be designed as "commodity" tokens to serve the general public and lower the threshold as much as possible; some are designed as "securities" tokens just for exclusive user services.

With these tokens, they will submit ETF issuance applications (or "commodities" or "securities") to regulatory agencies step by step, and realize the financial assets they have created smoothly, legally and compliantly.

In short, the giants have knocked on the door of legality and compliance of on-chain assets, and then they will rush into this new field and greedily grab new fruits.