Latest news with #SandeepNailwal
Yahoo
3 days ago
- Business
- Yahoo
Exclusive: Polygon co-founder Sandeep Nailwal says ‘no plans' for ETF, slams premature filings
Exclusive: Polygon co-founder Sandeep Nailwal says 'no plans' for ETF, slams premature filings originally appeared on TheStreet. As the crypto market sees a flurry of exchange-traded fund (ETF) filings following the greenlight for Bitcoin and Ethereum ETFs, Polygon co-founder Sandeep Nailwal says the network has no intention of joining the rush — at least not anytime soon. 'Most of the crypto companies are filing for these ETFs, while most of them know that it's not going to be approved for the next 3-4 years,' Nailwal said in a conversation with TheStreet Roundtable's Senior Editor Mehab Qureshi. 'They are not that decentralized, they are not that trustless and all that.' Rather than spending millions in lobbying and legal fees to push for a token-backed ETF, Nailwal said Polygon's strategy is to focus on product development and user growth. The U.S. Securities and Exchange Commission (SEC) is currently reviewing over 70 crypto-related ETF filings, signaling a growing appetite among asset managers to offer regulated exposure to altcoins. Following the landmark approvals of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in May 2024, firms have expanded their focus beyond the top two cryptocurrencies. Now, new filings include applications for ETFs tied to Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Dogecoin (DOGE), Litecoin (LTC), and even Tron (TRX). 'When the asset is ready, the market actually automatically goes forward,' Nailwal said. 'I would want to take Polygon's fundamental interaction to a place where a large ETF provider reaches out to us automatically. Instead of we paying millions of dollars that, we'll go and buy our ETFs.' His remarks come amid growing optimism in the crypto industry after the approval of Ethereum ETFs and the launch of dozens of filings from smaller firms, many betting on future regulatory clarity under the Trump administration. But Nailwal says filing for an ETF prematurely could be a distraction. 'I don't want to spend any of that. I better focus my efforts on getting the fundamental traction of users,' he said. 'And then the ETFs and the markets will push forward.' In the same conversation, Nailwal also addressed concerns around Ethereum's stagnating price action and declining narrative dominance. 'There was a narrative violation for Ethereum that maybe Ethereum was not the L1,' he said, referring to the rise of other layer-2 execution environments that pulled attention away from Ethereum's core value. 'But if you see in terms of the value, I think still around 80 to 90 percent of all the value created in crypto exists on Ethereum,' he added. 'Ethereum powers the settlement for the security and the subvention for hundreds and hundreds of these layer-1 chains.' Nailwal acknowledged that questions remain about how ETH as an asset accrues value, but emphasized the broader ecosystem remains robust. While Polygon is open to re-evaluating its ETF stance depending on macroeconomic changes, Nailwal said it will take more than market noise to move the needle. 'If the Fed pivots and the rates start going down… and then we start seeing a lot of demand on the ETF side. Sure, we might look into that,' he said. 'But as of now, [we] will be completely focused on our products.' Exclusive: Polygon co-founder Sandeep Nailwal says 'no plans' for ETF, slams premature filings first appeared on TheStreet on Jun 2, 2025 This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared.
Yahoo
31-03-2025
- Business
- Yahoo
Crypto Market Cycle Permanently Shifted, Says Polygon Founder Sandeep Nailwal
The traditional four-year crypto market cycle, once closely tied to Bitcoin halving events, is no longer as predictable as it once was. According to Sandeep Nailwal, co-founder of Polygon, the cycle has shifted due to the growing maturity of the cryptocurrency market and the increasing involvement of institutional investors. Nailwal noted that although Bitcoin's halving events still influence the market, their effect has become less pronounced. He explained that speculative activity has slowed due to high interest rates and low liquidity conditions, but once those factors change, a market rebound could occur. However, he expects the market to behave in a more stable manner, with corrections being less severe than in previous cycles, where drops of up to 90% were typical. Instead, he predicts that drawdowns will be around 30-40%. While the Bitcoin halving remains a significant event, its influence on the market has become less mechanical. Nailwal highlighted that market corrections in the past often followed predictable patterns, but the current cycle is evolving due to factors like institutional adoption and macroeconomic pressures. The increase in institutional investment has helped reduce volatility in the crypto market, aided additionally by new financial products like Bitcoin ETFs. These ETFs, which allow investors to gain exposure to Bitcoin without actually holding the cryptocurrency, have also played a part in disrupting the traditional market cycle. By restricting the flow of capital to the underlying assets, these products prevent funds from rotating freely within the broader crypto ecosystem. This has altered the usual dynamics, with larger-cap assets like Bitcoin and Ethereum absorbing most of the capital, leaving smaller-cap assets with less attention. Geopolitical events and macroeconomic factors have also contributed to the shifting landscape of the crypto market. U.S. government policies, including President Trump's executive order to create a Bitcoin strategic reserve, have legitimized the crypto space in the eyes of institutional investors. As a result, capital has flowed into established assets, contributing to a concentration of wealth in Bitcoin and Ethereum. Analysts have noted that Bitcoin's dominance has risen, now nearing 54%, a level not seen since 2021. Despite these changes, some analysts, including Miles Deutscher, argue that the classic four-year cycle still has relevance, though it may no longer follow the same pattern. Deutscher pointed out that while the market is less volatile, the typical sequence of accumulation, rise, distribution, and fall is becoming less predictable. He suggested that market behavior is becoming more desynchronized, with Bitcoin and Ethereum leading the charge before altcoins see any significant gains. This shift, combined with the broader economic environment, suggests that the crypto market is entering a new phase where older cycles may no longer be as reliable a guide for investors.
