The CEO of VanEck: Cryptocurrency Industry Should Focus on Improving On-Chain Costs, Rather than ETF Approval or Denial.
VanEck CEO Jan van Eck emphasized in an interview with CoinDesk that the cryptocurrency industry should focus more on on-chain transaction fees rather than being overly concerned with the issuance of ETFs related to Bitcoin and Ethereum.
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Focus on High On-Chain Fees, Not Crypto ETFs
Optimistic about On-Chain Application Development
Focus on High On-Chain Fees, Not Crypto ETFs
Jan van Eck pointed out that the on-chain transaction fees of Bitcoin and Ethereum are unpredictable, making it more difficult to establish practical applications within the ecosystem.
“Just take a look at the on-chain transaction fees of Bitcoin and Ethereum. Nobody would want to use these databases to build any applications, right? Let me give an example to non-crypto people: ‘Would you want to spend $50 on gas this week and suddenly have it turn into $600 next week?’ That’s basically what the expensive Gas fees on Ethereum are like.”
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Optimistic about On-Chain Application Development
Jan van Eck believes that stable on-chain fees were the most important development last year, but the focus seems to have been overshadowed by the issuance of Bitcoin ETFs. The good news is that affordable transaction fees can now be obtained through Solana or L2.
He stated:
“For me, the most interesting thing in the crypto space right now is that we have scalable databases that can accommodate a large number of users, maintain high uptime, and now have predictable costs. So, it is now possible to build practical applications on these databases, and I expect practical applications to become more prominent in the coming years.”
VanEck’s analysis team recently issued a report that is highly optimistic about the future development of L2:
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VanEck Analysis: Ethereum L2 Will Reach a $1 Trillion Market Value by 2030, Who Will Be the Winner?
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Jan van Eck also mentioned a pessimistic view on Ethereum spot ETFs, stating that it is unlikely to be approved before the May deadline. Compared to Bitcoin ETFs, the SEC has not responded to applications from Ethereum spot ETF issuers.
He said:
“We have already submitted the S1 document, but we have not received any feedback. This means that the ‘issuer is not ready to disclose the documents’ and an Ethereum ETF will not be approved.”
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Approval of Ethereum ETF in Doubt, Issuers VanEck and CoinShares Lack Confidence
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Jan van Eck
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