- More analysts are sounding alarms on ETH ETF threat to BTC
- However, BlackRock claims its clients are heavy on BTC and less on ETH.
Ethereum’s [ETH] potential threat to Bitcoin [BTC] seems inevitable, according to some key industry analysts. One of the analysts, Jim Bianco, underscored that Ethereum’s recent regulatory relief and imminent ETF could tip ETH to flip BTC before the next halving.
“A truly great week of ETH. BTC is not dead but will now have to surf in the wake of ETH’s coming regulatory freedom. Flippening before the next halving?’
Bianco’s comment resonates with recent Peter Schiff’s take on ETH ETF’s risk to BTC.
Bianco’s reasons for bold ETH flipping BTC projection
Per Bianco, Ethereum’s fully fledged ecosystem from lending to staking meant that there were many avenues TradFi could benefit from the platform, unlike BTC.
“Wall Street gets this. It is an entire ecosystem with borrowing, lending, insurance, tokenomics, staking (yield), stablecoins, NFTS, primitives, L2s, and on and on. Plenty for them to work with here as opposed to hodl-ing one coin.’
Bitcoin’s L2 ecosystem is not fully fledged but is moving on the same path through players like Stacks [STX]. However, Bianco claimed that ETF could work against BTC L2 and stated,
“My other concern is that the ETF will remove incentives for development, as it is easier to HODL in a regulated brokerage account than on-chain. I don’t worry about this as much with ETH.’
Most TradFi titans have reiterated a bullish case for Ethereum. Interestingly, even JPMorgan’s Jamie Dimon, a Bitcoin critic, reportedly believes Ethereum could have some use cases.
However, BlackRock, the world’s largest asset manager and parent firm of the most successful BTC ETF, thinks otherwise.
In a recent podcast with Bloomberg, Blackrock’s head of digital assets, Robert Mitchnick, mentioned that their clients are ‘overwhelmingly into Bitcoin and a little bit of Ethereum.’
Interestingly, Quinn Thompson, founder of crypto hedge fund Lekker Capital, also projected that ETH ETFs could grab some inflows from spot BTC ETFs.
It remains to be seen how the ETH ETF development will play out and whether these analysts’ claims are true or merely speculation.
