Macroeconomist Alex Krüger is detailing his outlook on how Ethereum (ETH) could pick up the pace from it’s slower than expected performance.
In a new interview on the Bitcoin Suisse podcast, Krüger says Ethereum is currently the “slow horse” of the digital assets market, largely due to its size and its already-established presence in the space.
However, the analyst says that the leading smart contract platform can turn it around if the narrative around spot market ETH exchange-traded funds (ETFs) gains prominence
“All of us, we already hold ETH, so it’s harder for ETH to move. This does not mean ‘bearish,’ it means ‘bearish relative to other assets.’ For ETH to speed up and not be a slow horse, it needs the ETF narrative and the ETF narrative is not guaranteed, [but] it’s highly uncertain.
The Bloomberg guys, who are the guys that have been driving the ETF narrative for Bitcoin very successfully – and hats off to them – they’re pinning the probability of an ETF by May [at] 60%…
I think it’s overly optimistic because the way I see it, it’s unlikely we’re going to have an [Ethereum] ETF as long as [Gary] Gensler is the Chair of the SEC (U.S. Securities and Exchange Commission). He’s 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 Chair of the SEC, paving the way for Ethereum and other crypto ETFs.
Last month, the SEC made the historic decision to approve spot market Bitcoin (BTC) ETFs after years of rejecting them. ETFs give investors exposure to an asset without them having to actually purchase the asset itself.
Kruger says the market itself will likely increase the probability of an approval for spot market ETH ETFs.
“I think the market is going to increase the probability of approval, so at some point in the next few months ETH is going to heat up again and dramatically overperform [against] Bitcoin.”
Ethereum is trading for $2,738 at time of writing, a 5.3% gain on the day.
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