Ethereum Predicted as Clear Winner in Stablecoin Race by VanEck CEO
Jan van Eck, CEO of investment management firm VanEck, believes Ethereum will be the clear winner among blockchains...
Quick overview
- Jan van Eck, CEO of VanEck, believes Ethereum will dominate as the stablecoin market grows, positioning it as the 'Wall Street token.'
- He predicts that banks will need to adopt Ethereum for stablecoin transactions to remain competitive, especially as the total supply of stablecoins surpasses $280 billion.
- Van Eck emphasizes the urgency for financial institutions to integrate stablecoin technology within the next year to avoid losing out on potential revenue.
- Recent data shows that Ether ETFs have significantly outperformed Bitcoin ETFs, attracting over ten times the inflows in recent trading days.
Jan van Eck, CEO of investment management firm VanEck, believes Ethereum will be the clear winner among blockchains as the stablecoin market expands. Moreover, he expects banks to depend on Ethereum as they prepare for a rush of stablecoin transactions.
During an interview with Fox News Business on Wednesday, van Eck explained that banks and financial institutions will soon need to use a blockchain to process stablecoin payments. Furthermore, he argued that Ethereum should be the leading choice for this role.
ETH as “The Wall Street Token”
He even described Ethereum as what he calls the “Wall Street token.” In addition, he clarified that, as a result of stablecoins, every bank and financial services company must now be ready to accept them. At the same time, it is important to note that VanEck itself offers Ethereum-based exchange-traded funds, which track the price of ether but do not hold the cryptocurrency directly.
Meanwhile, regulation is also moving forward. The Genius Act was passed by the US House and signed into law by President Donald Trump. Furthermore, this Act became the first federal law in the United States to specifically address payment stablecoins. Alongside this development, the total supply of stablecoins has now surpassed $280 billion, showing rapid growth in the market.
Van Eck also projected that as more organizations adopt stablecoins, banks will need to adjust quickly or risk losing money. His comments came at a notable time, as Ether hit a new all-time high of $4,946 on Sunday, according to CoinGecko. However, as of writing, ETH was trading slightly lower at $4,607.3, marking a 1% decline from the previous day.
Looking ahead, van Eck emphasized that companies must adopt technology within the next 12 months to handle stablecoin usage. Additionally, he stated that it may take some time for complete integration, but no financial services company wants to reject stablecoins. Instead, they are preparing to say yes to digital dollars.
https://twitter.com/vaneck_us/status/1960809026863956229/video/1
Supporting this trend, a report published on May 14 by enterprise-grade digital asset platform Fireblocks revealed that 90% of institutional plahttps://x.com/vaneck_us/status/1960809026863956229/video/1yers surveyed are already considering the use of stablecoins in their operations.
Other industry voices also highlight Ethereum’s strengthening position. For example, Matt Hougan, chief investment officer at Bitwise, told Cointelegraph in July that treasury adoption has solved Ethereum’s narrative problem. Moreover, he explained that stablecoins have packaged ETH in a way that traditional investors can understand, which has helped attract greater funding.
Corporate buyers are also playing a role in this momentum. BitMine and SharpLink are currently among the most active purchasers of Ether. In fact, corporate treasury firms together acquired almost $6 billion worth of ETH in the last month, showing how strong the demand has become.
Spot Ether ETFs Outpace Bitcoin with Tenfold Growth
This demand is also reflected in the performance of exchange-traded funds. Spot Ether ETFs in the United States have been outpacing their Bitcoin counterparts with overwhelming growth. During the last five trading days, Ether ETFs attracted more than ten times the inflows of spot Bitcoin ETFs.
Since August 21, Ether ETFs have seen inflows of $1.83 billion, whereas Bitcoin funds have only received $171 million in the same period, according to CoinGlass. Furthermore, on Wednesday alone, nine Ether funds priced at $4,600 received $310.3 million in inflows. In contrast, 11 Bitcoin funds priced at $113,040 managed to gather just $81.1 million.
Price action in the market also reflects this stronger performance. Ether has rebounded faster than Bitcoin this week, with ETH rising 5% from its Tuesday low. In comparison, Bitcoin gained only 2.8% over the same timeframe, showing Ethereum’s current strength in both adoption and price movement.
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