Ethereum
Ethereum Loyalists Say ETF News Not Priced, But Bitcoin Maxis Pushes Back
The “Laser-eye” gang must eat their words after ETH ETF approval, but still claim ETH will never compete with BTC.
Ethereum holders were on the edge of their seats, waiting for a price hike after the US Securities and Exchange Commission (SEC). approved the Ethereum spot ETF filing Form 19b-4.
But the huge gains they had hoped for did not materialize, leading to a conflict of perspectives between the Ethereum faithful and the Bitcoin “maxis”.
For Ethereum enthusiasts, like Dhee.ETHthe price of Ethereum does not fully reflect its true value.
“It takes time to think about the price. Even for Bitcoin, the ETF was approved in January, but the all-time high happened in March,” Dhee.ETH, an Ethereum educator, told The Defiant . “The market reacts by buying on rumors and selling on news.”
Only a crypto product
Some Bitcoin maxis disagree.
Bitcoin maximalists are a subgroup of the broader Bitcoin ecosystem who believe that Bitcoin is the one and only true crypto asset. They adhere to a Bitcoin-only future, calling any other token that is not BTC a scam.
The Laser Eyes, as they are nicknamed since they sport laser eyes in most of their Twitter profile pictures, believed that Bitcoin would be the only commodity considered as such by American regulators.
But when securities regulators approved the Ethereum ETF, legal experts saw that as an indication that regulators also classify ETH as a commodity.
On May 23, the SEC gave the green light for eight spot Ether ETF applications to be listed on the stock exchange. Interestingly, ether fell by 3% just before the news was announced. At the time of writing, Ethereum is trading at $3,963.
The Maxis are now reversing their narrative, adapting to current events.
“Bitcoin will still win despite lesser assets like Ethereum, because Bitcoin has compelling utility and a focused narrative as hard freedom money and a store of monetary value,” said Terrence Yang, chief executive officer of Swan Bitcoin. “Ethereum’s potential is tiny compared to Bitcoin, just like other MLM plays like Herbalife – a known Ponzi scheme – is tiny compared to AI or the Internet.”
Yang isn’t alone in his opinion either.
Bitcoin Educator Kashif Raza, founder of Bitinning, told The Defiant that institutions might find Ethereum less attractive than Bitcoin due to its unlimited supply. He estimated that Ethereum could attract only 15-20% of the investments Bitcoin receives, both in the short and long term.
“It’s like asking an institution whether they prefer to invest in a gold ETF or a silver ETF,” Raza said. “Bitcoin’s store of value will likely attract more investment.”
Winning through regulation
Bitcoiners have been saying for years that “their” asset will win on the regulatory front.
On May 2, MicroStrategy CEO and well-known Bitcoin bull Michael Saylor made a decision. hard position regarding a potential ETH ETF at the MicroStrategy World 2024 conference. He predicted that the SEC would classify Ethereum as a security “not a commodity,” a view that has long been peddled by bitcoiners.
He added that the SEC would reject related spot ETF applications, including those from asset managers like BlackRock.
The disappearance of the anti-crypto army is good for everyone
Dennis Porter is a Bitcoiner who takes a nuanced, but pro-Bitcoin, view.
The CEO and co-founder of Satoshi Action Fund, a nonprofit that advocates for good Bitcoin mining policy, told The Defiant that while he considers Bitcoin to have a “better value proposition” than Ethereum, the endorsement is good for the industry.
“Not only is the broader space scoring points,” he said, but “we’re seeing Gary Gensler’s SEC losing battle after battle and Liz Warren’s anti-crypto army collapsing.”
Saylor walked back his previous statements and echoed Porter’s views when he appeared on the May 25 episode of the “What Bitcoin Did” podcast with Peter McCormack.
“I think it might be better for Bitcoin because I think we are much more powerful politically, supported by the entire crypto industry,” Saylor said.
The political battle, with Ethereum taking hold on Wall Street, is sending positive waves throughout the industry.
ETH is “extremely undervalued”
Ethereum has been slow to catch up to its all-time high, a feat that Bitcoin – and many other tokens – have already achieved.
But with the new ETF approval, investors are bet the network’s multiple use cases will take it there and beyond.
Ethereum loyalist Ishita Pandey, known as Ishita.ETH on
“Ethereum is not just a crypto but a versatile platform for decentralized applications (dApps), smart contracts, and various decentralized finance (DeFi) projects,” she told The Defiant. “This utility offers a broader range of use cases than Bitcoin, which primarily serves as a store of value.”
Pandey is referring to what Bitcoin maximalists tend to ignore, which is the network’s one and only use case: money. Even with the arrival of Bitcoin Ordinals, which has seen a flurry of activity, and the shattering of the “pet rock” narrative, the network is still a long way from what Ethereum offers.
Dhee.ETH highlighted that the real price impact will only be visible once these ETFs are fully launched and listed on the markets.
Will Ethereum bulls eat the Bitcoin maxis’ lunch or will laser eyes have the last laugh? Only time will tell, but it appears the market has spoken and wants both assets.