Major Chinese Bank Labels Ethereum as “Digital Oil”, Praises Both ETH and BTC

• The Industrial and Commercial Bank of China (ICBC), the world’s largest bank, has stirred the crypto market by referring to Ethereum (ETH), the second largest cryptocurrency by market cap, as “digital oil”. Additionally, the bank made positive comments about Bitcoin.
• ICBC has acknowledged the growth and development of both Ethereum and Bitcoin over the years. The bank compared Bitcoin to gold, emphasizing its scarcity maintained through mathematical consensus.
• ICBC noted, “While Bitcoin preserves scarcity similar to gold, it overcomes issues like divisibility, difficulty in verification, and portability.” Furthermore, the bank highlighted Ethereum’s critical role in supporting new Web3.0 innovations, including the launch of stablecoins, thus bridging the gap between the crypto market and the real world.

ICBC calls Ethereum “digital oil” and recognizes its role in the advancement of Web3.0 technologies. Read more to discover the recent developments and market implications.

Ethereum’s Advancements in Smart Contracts and Decentralized Applications

ICBC has praised both Ethereum and Bitcoin for their significant progress over the years. The bank compared Bitcoin’s value to that of gold, lauding its capability to maintain scarcity through mathematical consensus, unlike gold which has practical limitations such as divisibility and portability. Ethereum, according to ICBC, serves as “digital oil” due to its support for various Web3.0 innovations and stablecoins.

The Technological Upgrades and Developer Support in Ethereum

ICBC emphasized Ethereum’s constant technological upgrades, which enhance its security, scalability, and sustainability, ensuring that the digital future is backed by robust technical prowess. The bank also pointed out Ethereum’s unique programming language, Solidity, which allows developers to deploy complex smart contracts and decentralized applications (DApps). This has made Ethereum fundamental in new creative sectors like NFTs and DeFi (Decentralized Finance).

Anticipation for Spot Ethereum ETF Approval

The backing of Ethereum by ICBC comes at a critical time when the crypto market is eagerly awaiting the U.S. Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETF trading. The regulatory body has asked all Ethereum ETF applicants to submit revised and updated S-1 registration forms. SEC Chairman Gary Gensler has indicated that the approval process for spot Ethereum ETF might take some time.

Regulatory Review Process for Ethereum ETFs

After the submission of the S-1 applications, the Commission will provide initial feedback to the filers, which may necessitate further modifications. Insiders familiar with the process suggest that it could take several weeks, and some feedback from the SEC is expected within the week. The iterative process underscores the complexity and thoroughness of the regulatory scrutiny involved.

Conclusion

The recent statements from ICBC have created significant buzz in the crypto markets. Referring to Ethereum as “digital oil” and acknowledging its pivotal role in supporting Web3.0 innovations highlight the evolving status of cryptocurrencies within traditional finance. The upcoming decision by the SEC on the spot Ethereum ETF and the ongoing developments within the Ethereum ecosystem are expected to continue shaping discussions in this dynamic space.