While grassroots cryptocurrency adoption has stalled since the industry crashed last year, the CEO of trading platform eToro said the appeal of exchange-traded funds (ETFs) for institutions and the ease of investing through various platforms for non-experts are driving Bitcoin (BTC) further. I believe you can do it. ) selection.
EToro CEO Yoni Assia told Cointelegraph at the recent Abu Dhabi Finance Week that the institution generally has strict systems and prefers not to build new infrastructure for each asset class. But for him, products like the Bitcoin ETF are consistent with existing modes of operation, making it easier to enter the market without having to develop a new framework. He explained:
“(Bitcoin) ETFs could be an important driver of adoption. (Because)… institutions work in a very disciplined way… they are looking for the same infrastructure, and in many cases ETFs are the infrastructure that enables institutional demand. People who don’t want their own custody.”
Assia added that the availability of Bitcoin ETFs is likely to strengthen Bitcoin’s legitimacy in the eyes of institutional investors and, in turn, could 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, partly due to expectations of the approval of a spot ETF. The leading cryptocurrency by market capitalization has since hovered between $37,000 and $38,000.
Related: Bitcoin ETF Could Drive 165% BTC Price Rise in 2024 — Standard Chartered
Meanwhile, the ease of investing in Bitcoin through a user-friendly platform and integration with diverse investment portfolios is important to bring more retail users into the market, according to Assia.
“What is important at the retail level is the user experience, simplicity and the ability to incorporate cryptocurrency investing and cryptocurrency trading into a broader portfolio,” he added.
“(This is) what we believe crypto should be: an investment that is part of a more holistic investment view of investing in the stock market, yield products… and commodities.”
Despite a decline in grassroots cryptocurrency adoption globally, low- and middle-income countries such as India, Nigeria, and Ukraine saw the greatest recovery in grassroots cryptocurrency adoption last year, according to a September report from blockchain research firm Chainalytic. It turns out that it is.
According to the study, these figures are “very promising” for the prospects of cryptocurrencies, with increased institutional adoption led by organizations in high-income countries.
“I think the adoption of Bitcoin in general is about people understanding the need for an internet currency that is non-confiscatable and resistant to censorship,” Assia said. “And it grows over time.”
He believes more people will understand why some investors should accumulate cryptocurrencies in the same way they trade gold and other commodities.
“(Cryptocurrency) is still an emerging Internet product, and interest in Bitcoin will continue to grow over the next decade. I have no doubt that in 10 years it will have higher prices and become a more important force in the world.