The president of Ava Labs, the team behind layer-1 blockchain Avalanche (AVAX), says he is bullish on Ethereum (ETH)-based exchange-traded funds (ETFs).
In a new interview with Bloomberg Television, Ava Labs President John Wu says say that Ethereum ETFs will see success over time due to the competitive nature of the decentralized finance (DeFi) industry.
“I don’t think anyone expected this [the] Ethereum ETF will be just as successful as the Bitcoin ETF, but in reality Bitcoin really only has one competitor: gold. Ethereum is about utility and creating use cases.
They actually have a lot of competitors, from Avalanche to Solana and a whole host of others. And so you have a situation where the supply – because it’s an earned proof-of-stake model – increases and yet the transactions are fairly stable.
So there is a bit of an imbalance, but I am very confident that over time it will still be in a draw position and have a chance to allow others to enter the space.
Yu then highlights the macroeconomic trends that have led him to be “very positive” about the future of the digital asset industry.
“What interests me is that you’re seeing more adoption and this space actually has three components that are driving this. One of them is the macro level… Every central bank cuts interest rates.
The fact that there is an ETF for Ethereum and Bitcoin will provide more access. So that’s ultimately positive. Morgan Stanley will now let their RIAs (registered investment advisors) sell the Bitcoin ETF. So that’s definitely positive.
And I think what people don’t realize is that adoption is on the network, and it’s actually growing tremendously in this area. If you look at wallets, look at addresses, it’s there. So I am very positive for the future.”
ETH-based ETFs, which give investors exposure to ETH without the need to purchase the assets directly, were approved by the U.S. Securities and Exchange Commission (SEC) earlier this year.
Ethereum is trading at $2,468 at the time of writing, down 3.3% over the past 24 hours.
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