Ava Labs President John Wu ‘Very Positive’ on Ethereum ETFs – Here’s Why

The president of Ava Labs, the crew behind layer-1 blockchain Avalanche (AVAX), says he’s bullish on Ethereum (ETH)-based exchange-traded funds (ETFs).

In a brand new interview with Bloomberg Tv, Ava Labs President John Wu says say that Ethereum ETFs will see success over time as a result of aggressive nature of the decentralized finance (DeFi) trade.

“I do not assume anybody anticipated this [the] Ethereum ETF will probably be simply as profitable because the Bitcoin ETF, however in actuality Bitcoin actually solely has one competitor: gold. Ethereum is about utility and creating use circumstances.

They really have loads of rivals, from Avalanche to Solana and an entire host of others. And so you might have a state of affairs the place the availability – as a result of it is an earned proof-of-stake mannequin – will increase and but the transactions are pretty secure.

So there’s a little bit of an imbalance, however I’m very assured that over time it’s going to nonetheless be in a draw place and have an opportunity to permit others to enter the house.

Yu then highlights the macroeconomic traits which have led him to be “very optimistic” about the way forward for the digital asset trade.

“What I care about is that you just see extra adoption and this house truly has three parts that drive that. One among them is the macro stage… Each central financial institution cuts rates of interest.

The truth that there may be an ETF for Ethereum and Bitcoin will present extra entry. In order that’s in the end optimistic. Morgan Stanley will now let their RIAs (registered funding advisors) promote the Bitcoin ETF. In order that’s undoubtedly optimistic.

And I believe what folks do not understand is that adoption is on the community, and it is truly rising tremendously on this space. When you have a look at wallets, have a look at addresses, it is there. So I’m very optimistic for the long run.”

ETH-based ETFs, which give buyers publicity to ETH with out the necessity to buy the property immediately, have been accepted by the U.S. Securities and Change Fee (SEC) earlier this 12 months.

Ethereum is buying and selling at $2,468 on the time of writing, down 3.3% over the previous 24 hours.

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