Why Web 3.0 and DeFi Are the Future of Finance: Insights from Recharge Capital Founder

The Uncertainty of a Spot Ether ETF Approval in the US, According to Recharge Capital Founder John Lo

In an exclusive interview with Cointelegraph, Recharge Capital founder John Lo expressed that the approval of a spot Ether exchange-traded fund (ETF) in the United States is not as certain as the previous approval of spot Bitcoin ETFs. Lo believes that the Securities and Exchange Commission (SEC) will closely scrutinize all upcoming crypto-based ETFs, particularly those for Ether.

A number of companies, such as BlackRock, Grayscale, Fidelity, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton, are currently vying for an Ether ETF. The SEC is expected to make decisions on VanEck’s application by May 23, ARK 21Shares’ by May 24, Hashdex’s by May 30, Grayscale’s by June 18, and Invesco’s by July 5. Fidelity and BlackRock’s applications must be decided by August 3 and August 7, respectively.

According to Lo, even if the SEC denies these applications, Ethereum will still thrive without an Ether ETF due to its rapid innovation and recent upgrades on the network.

Web 3.0: A Beginner’s Guide to Decentralized Finance

The emergence of decentralized finance (DeFi) has been met with criticism for its lack of user-friendly design, making it challenging for newcomers to navigate. This has become a major barrier for institutional involvement, according to industry expert John Markoff.

Another obstacle for DeFi is the high cost of acquiring users, which is hindering the growth of the industry, as noted by Markoff.

Ethereum continues to be a hub for DeFi activity, with the total value locked (TVL) on the network increasing by 80.3% in the past year to reach $51 billion as of March 18, according to DefiLlama. Additionally, the number of unique wallet addresses has grown by 21.6% to 115,934 in the same time period, according to data from Etherscan.