The Impact of the Approval of Ethereum Spot ETFs on the Crypto Ecosystem (Part Two)

In yesterday's article, we discussed how traditional capital from Wall Street will eventually cover the entire entry and exit of crypto assets to fiat currency (USD) and attempt to control the pricing power of all mainstream crypto assets through financial instruments like spot ETFs.

But are the giants merely satisfied with laying out existing crypto assets?

I believe their appetite is much larger than that. They will eventually step in personally and take the initiative to issue assets—after all, can we, the seasoned players, lose to you newcomers in this game?

Specifically, how will they do this?

I think they will issue their own assets by comprehensively laying out infrastructure and application fields.

If everyone closely observes the process of institutions submitting applications for Bitcoin and Ethereum spot ETFs to the SEC, it becomes clear that despite many institutions submitting their respective applications, there are significant differences in their attitudes toward Bitcoin and Ethereum.

Two companies stand out in this regard: Grayscale and BlackRock.

In a previous article, I shared a recent piece written by Grayscale. In that article, Grayscale primarily focused on Bitcoin, even dedicating a section to the inscription ecosystem. It's worth noting that at that time, the enthusiasm for inscriptions was still limited, even among retail investors.

And what about BlackRock?

Its focus leans more toward Ethereum.

Recently, the president of BlackRock made a statement suggesting that even if the Ethereum spot ETF does not pass, it will not affect their attention to the Ethereum ecosystem. He has repeatedly stated in public that they will explore some application scenarios on Ethereum, such as RWA.

Compared to these two, Grayscale's style is closer to the crypto ecosystem, while BlackRock's style carries a distinct traditional business vibe. However, Grayscale's scale is clearly not comparable to BlackRock's. Once BlackRock really starts to exert its influence, its impact will quickly surpass that of Grayscale.

Therefore, I estimate that the influence of traditional institutions on the crypto ecosystem will increasingly lean toward BlackRock's style in the future.

From BlackRock's background, it is evident that they care more about the commercial benefits and practical uses that blockchain technology can bring. Currently, the most secure and reliable blockchain platform with comprehensive technical capabilities is Ethereum. Moreover, the existing performance of the Ethereum ecosystem can fully support the RWA market that BlackRock is interested in.

Thus, I believe that traditional Wall Street institutions like BlackRock will soon step in to actively lay out two areas:

One is the infrastructure of the blockchain field; the other is application projects on the blockchain platform.

In terms of blockchain infrastructure, I believe there is a high possibility that it will be the second-layer scaling of Ethereum.

These institutions will either collaborate with existing second-layer scaling projects, directly hold their tokens, and exert their influence on these projects to turn these second-layer scalings into their "reservations"; or they will personally find teams to create a second-layer scaling specifically for their application scenarios.

Once they have the infrastructure serving their needs, the next step is to deploy their most familiar and easily developed business on top: RWA.

This way, they can bridge the gap between off-chain finance and on-chain finance, opening up new business areas and profit models.

In this process, they will certainly issue various tokens based on their needs: some may be designed as "commodity" tokens to serve the public and lower the threshold; others may be designed as "security" tokens to serve exclusive users.

With these tokens, they will then methodically submit ETF issuance applications to regulatory agencies (either "commodity" or "security"), smoothly and legally monetizing the financial assets they have created.

In summary, the giants have already knocked on the door of legitimate on-chain assets, and next, they will rush into this new field, greedily seizing new fruits.