Support for Those Two Cryptocurrencies from the Giant Chinese Bank!

The Industrial and Commercial Bank of China (ICBC), the world’s largest bank, created a surprise in the cryptocurrency markets by describing Ethereum (ETH), the second largest cryptocurrency unit in terms of market value, as “digital oil”. He also made positive statements about Bitcoin.

Second-largest cryptocurrency Ethereum stands out by supporting smart contracts and dApps

In its statement, ICBC appreciated the growth and development that both Ethereum and Bitcoin (BTC) have achieved over the years. Comparing Bitcoin to gold, the bank said, “Bitcoin, while maintaining a gold-like scarcity through mathematical consensus, solves problems such as being difficult to divide, difficult to detect, and problematic to transport.” said. ICBC later dubbed it “digital oil,” considering its critical role in providing a strong underpinning to many Web3.0 innovations, including the launch of Ethereum stablecoins. The bank said:

Ethereum provides the technical power for the digital future by constantly upgrading its technology in terms of security, scalability and sustainability. Additionally, the launch and development of stablecoins creates a bridge for the cryptocurrency market to connect with the real world.

While ICBC acknowledged that Ethereum has its own programming language called Solidity, more importantly, it underlined how the network supports developers. According to the statement published by the bank, ETH allows developers to distribute complex smart contracts and decentralized applications (DApps). ICBC believes this makes Ethereum fundamental in creative new areas such as NFTs and DeFi (Decentralized Finance). In addition, the China-based bank predicts that this feeling will gradually expand to physical infrastructure networks.

Spot Ethereum ETF approval awaited

This boost from ICBC to the altcoin comes as the cryptocurrency market waits for the US Securities and Exchange Commission (SEC) to finally approve spot Ethereum ETF trading. The regulator has required all Ethereum ETF applicants to submit corrected and updated S-1 registration forms. Last week, SEC Chairman Gary Gensler hinted at the possibility of a slow process for the latest approval of spot Ethereum ETF trading. In Gensler’s words, approval of the necessary S-1 forms “will take some time.”

It is important to note that following the submission of S-1 applications, the Committee will provide initial feedback to filers, which will lead to further changes. Some sources familiar with the process say this iterative process could take several weeks, and some feedback from the SEC is expected within this week.

This statement of ICBC created a great impact in the cryptocurrency markets. The infrastructural features of Ethereum and the definition of the innovations it supports as “digital oil” once again brought to the fore the place of cryptocurrencies in the world of classical finance. It seems that the SEC’s decision regarding spot Ethereum ETF approval and developments in the Ethereum ecosystem will continue to shape the discussions in this area in the coming period.