Yesterday, the cryptocurrency market was stunned by the approval of Ethereum ETFs. In the midst of this, the veteran trader Peter Brandt issued a warning about the future of betting in the cryptocurrency space, particularly regarding Ethereum (ETH) and Solana (SUN).
Yesterday, the cryptocurrency market was stunned by the approval of Ethereum ETFs. In the midst of this, the veteran trader Peter Brandt issued a warning about the future of betting in the cryptocurrency space, particularly regarding Ethereum (ETH) and Solana (SUN).
Brandt predicted significant upheaval, suggesting that gambling could lead to massive financial losses and bankruptcy.
Notably, the trader, known for his controversial market predictions, called the bet inherently risky. He compared it to a leveraged asset, where investors borrow or leverage. ETH or SOL lending them with interest.
However, Brandt emphasized that this process inevitably attracts the attention of regulators. He predicted that central banks and government treasuries will soon impose strict regulations on gambling, eventually ending it in its current form.
He expressed skepticism about the sustainability of gambling activities, drawing a parallel to historical financial scams. Brandt suggested that many investors seeking high returns through betting will soon realize the flaws in their strategy, citing the infamous figure of Carlo Ponzi, after whom Ponzi schemes are named.
Brandt’s warning coincides with the recent approval of the spot Ethereum ETF. Notably, all issuers of these ETFs did not include participation points in their applications. This exclusion highlights a fundamental distinction: while unstaked ETH is classified as a commodity, the SEC treats staked ETH as a security.
Despite these concerns, betting remains of great interest to ETF issuers. It offers them the opportunity to earn interest by simply holding tokens and participating in network verification.