Bitcoin ETFs and user experience will drive adoption

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bitcoin ETFs and user experience will drive adoption

Although the global adoption of cryptocurrency has stopped after the bankruptcy within the sector in 2022, the CEO of the trading platform eToro believes that the appeal of exchange-traded funds (ETFs) for institutions and the ease of investing through various platforms for non-professionals can still drive the adoption of bitcoin (BTC).

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 are compatible with their existing methods of operation, which makes it easier for them to enter the market without developing new structures. He explained:

“Bitcoin ETFs will be a significant driver of adoption because … institutions work in a very rigid way … They are looking for the same infrastructure, and in many cases, the ETF is the infrastructure to meet the need of the institution for those who do not want to watch out for themselves.”

Assia added that the existence of a Bitcoin ETF is likely to strengthen the legitimacy of bitcoin in the eyes of institutional investors and, in turn, support the price of the asset, since it represents a familiar and institutional form of investment.

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Bitcoin surpassed $35,000 in October, a price not seen since May 2021, in part due to the excitement surrounding the approval of a spot ETF in the United States. The highest cryptocurrency by market capitalization ever fluctuated between $37,000 and $38,000.

Meanwhile, according to Assia, the ease of investing in bitcoin through user-friendly platforms and its integration into various investment portfolios is essential to bring more retail users to the market.

“At the retail level, it’s all about the user experience, simplicity and the ability to include investing and trading cryptocurrency in a broader investment portfolio,” he said, adding:

“This is what we believe cryptocurrencies should be: an investment that is part of a more holistic vision of investing in stock markets, yield products… and commodities.”

A September report from blockchain research firm Chainalysis showed that despite the decline in global cryptocurrency adoption, low- and middle-income countries, such as India, Nigeria and Ukraine, have regained the most in popularity. adoption of cryptocurrencies last year.

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According to the study, the numbers are “extremely promising” for the prospects of cryptocurrencies, with growing institutional adoption driven by organizations in higher income countries.

“I think the general adoption of bitcoin is about people understanding the need to have an unconfiscatable, censorship-resistant currency on the internet,” Assia said. “And that will only grow over time.”

The executive believes that many people will understand why they should accumulate cryptocurrencies in the same way that some investors sell gold and other commodities:

“Cryptocurrencies continue to be an emerging product on the internet, and we will continue to see more interest over time in Bitcoin over the next ten years. “I have no doubt that in 10 year, it will have higher prices and become a more important force in the world.”