Macroeconomist Alex Krüger describes his view on how Ethereum (ETH) could pick up the pace after its slower-than-expected performance.
In a new interview on the Bitcoin Suisse podcast, Krüger says that Ethereum is currently the “slow horse” of the digital asset market, largely due to its size and already established presence in the space.
However, the analyst says the leading smart contract platform could turn the tide if the story around ETH exchange-traded funds (ETFs) in the spot market gets out.
“We all already own ETH, so it’s harder for ETH to move. This does not mean ‘bearish’, but ‘bearish relative to other assets’. For ETH to accelerate and not be a slow horse, it needs the ETF story and the ETF story is not guaranteed. [but] it is highly uncertain.
The guys at Bloomberg, the guys who have driven the ETF story for Bitcoin with great success – and hats off to them – they estimate the likelihood of an ETF in May. [at] 60%…
I think it’s too optimistic because the way I see it, it’s unlikely we’ll get one [Ethereum] ETF as long as [Gary] Gensler is chairman of the SEC (US Securities and Exchange Commission). He has been very clear about it.”
However, Krüger goes on to say that if Donald Trump were to win the 2024 presidential election, Gensler would likely step down as chairman of the SEC, paving the way for Ethereum and other crypto ETFs.
Last month, the SEC made the historic decision to approve Bitcoin (BTC) ETFs in the spot market after years of rejecting them. ETFs give investors exposure to an asset without having to purchase the asset itself.
Kruger says the market itself will likely increase the likelihood of approval for ETH ETFs in the spot market.
“I think the market is going to increase the likelihood of approval, so at some point in the coming months ETH will heat up again and dramatically outperform. [against] Bitcoin.”
Ethereum is trading at $2,738 at the time of writing, a gain of 5.3% on the day.
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