In a notable shift in stance, MicroStrategy co-founder Michael Saylor expressed his optimism about Ethereum exchange-traded funds (ETFs) during a recent appearance on the "What Bitcoin Did" podcast. Saylor, a prominent advocate for Bitcoin, predicted that these new ETFs will significantly boost institutional adoption of cryptocurrencies.

Saylor highlighted the potential for mainstream investors to allocate a larger portion of their portfolios to cryptocurrencies, suggesting an increase from the current 1% to as much as 10%. He firmly believes that Bitcoin will continue to dominate this allocation, potentially accounting for up to 70% of institutional investments in the crypto asset class. "In fact, it might be better for Bitcoin because we are politically much more powerful…supported by the entire cryptocurrency industry…They obviously have a lot of political power, a lot of users, and they serve as another line of defense for Bitcoin," Saylor remarked.

In a surprising development, the U.S. Securities and Exchange Commission (SEC) approved several 19b-4 listing requests filed by Ethereum ETF issuers earlier this week. This decision came despite earlier predictions that the SEC would reject these requests due to a lack of engagement, political pressure, and legal uncertainties surrounding the Ether token.

Bloomberg ETF expert James Seyffart estimates that the demand for Ethereum ETFs could reach roughly 25% of the demand for Bitcoin ETFs, which debuted in January. However, the exact timeline for when these Ethereum ETFs will start trading remains uncertain, as the SEC still needs to approve the corresponding S-1 registration statements.

This marks a significant reversal for Saylor, who had previously asserted that Ethereum would never gain acceptance on Wall Street, deeming the flagship altcoin a security. He had maintained that Bitcoin was the only "institutional-grade crypto asset." Now, Saylor's revised outlook indicates a broader acceptance of Ethereum's role in the evolving cryptocurrency landscape, signaling a new era of cooperation and growth within the industry.