While popular adoption of cryptocurrencies has stalled after last year's implosions in the industry, the CEO of trading platform eToro believes the appeal of exchange-traded funds (ETFs) to institutions and ease of investment through various platforms for non-professionals could boost bitcoin (btc) even further. ) adoption.
EToro CEO Yoni Assia told Cointelegraph at the recent Abu Dhabi Finance Week that institutions often have rigid systems and prefer not to build new infrastructure for each asset class. However, for him, products like bitcoin ETFs align with their existing modes of operation, making it easier for them to enter the market without developing new frameworks. He explained:
“(bitcoin) ETFs could be an important driver of adoption (because) institutions work in a very rigid way. (…) They are looking for the same infrastructure, and ETF, in many cases, is that infrastructure to allow institutional demand for those who do not want to self-custody.”
Assia added that the availability of a bitcoin ETF would likely bolster bitcoin's legitimacy in the eyes of institutional investors and could, in turn, support the price of the asset as it represents a familiar and institutionalized form of investment.
bitcoin surpassed $35,000 in October, a price not seen since May 2021, in part due to enthusiasm around spot ETF approvals. Since then, the leading cryptocurrency by market capitalization has fluctuated between $37,000 and $38,000.
Related: bitcoin ETF Will Drive 165% btc Price Rise in 2024 – Standard Chartered
Meanwhile, according to Assia, the ease of investing in bitcoin through user-friendly platforms and its integration into various investment portfolios are crucial to bringing more retail users into the market.
“At the retail level, it's about user experience, simplicity, and the ability to integrate cryptocurrency investing and trading into a broader portfolio,” he said, adding:
“(This) is what we believe cryptocurrencies should be: an investment that is part of a more holistic investment view of investing in stock markets, (…) yield products (…) and commodities “.
A September report from blockchain research firm Chainalysis shows that despite a decline in grassroots cryptocurrency adoption around the world, lower-middle-income countries, such as India, Nigeria, and Ukraine, saw the biggest recovery in grassroots cryptocurrency adoption over the past year.
According to the study, the figures are “extremely promising” for the prospects of cryptocurrencies, along with growing institutional adoption driven by organizations in high-income countries.
“I think overall bitcoin adoption is about people understanding the need for non-confiscatable, censorship-resistant internet money,” Assia said. “And that only grows over time.”
The executive believes that more people will understand why they need to accumulate cryptocurrencies in the same way that some investors trade gold and other commodities:
“(Cryptocurrencies) continue to be an emerging product on the Internet, and we will continue to see increased interest in bitcoin over the next 10 years. “I have no doubt that in 10 years it will have higher prices and will be a bigger force in the world.”
