After the cryptocurrency industry experienced a decline in grassroots adoption following last year’s setbacks, eToro’s CEO believes that the growing popularity of exchange-traded funds (ETFs) among institutions and the accessibility of investing through various platforms for non-professionals could drive further adoption of Bitcoin (BTC).
Yoni Assia, the CEO of eToro, stated in an interview with Cointelegraph during Abu Dhabi Finance Week that institutions typically have established systems and are reluctant to create new infrastructure for each asset class. However, he believes that Bitcoin ETFs align with their existing operations, making it easier for them to enter the market without developing new frameworks. Assia explained:
“ETFs are an established investment vehicle that institutions are familiar with and can easily incorporate into their portfolios. The availability of a Bitcoin ETF would enhance Bitcoin’s credibility in the eyes of institutional investors and could potentially support its price.”
Assia also emphasized the importance of user-friendly platforms and the integration of Bitcoin into diverse investment portfolios to attract more retail investors to the market. He stated that the retail level of adoption relies on factors such as user experience, simplicity, and the ability to seamlessly incorporate cryptocurrency investments and trading into broader portfolios.
A recent report from blockchain research firm Chainalysis revealed that despite a decrease in global grassroots crypto adoption, lower-middle-income countries like India, Nigeria, and Ukraine experienced the most significant recovery in adoption over the past year. This, coupled with the increasing institutional adoption in high-income countries, suggests a promising outlook for the future of cryptocurrencies.
Assia believes that Bitcoin’s adoption is driven by people recognizing the importance of having a decentralized and censorship-resistant form of digital currency. He compares the accumulation of crypto assets to traditional investments in gold and other commodities, stating that more individuals will understand the need for cryptocurrencies over time.
Overall, Assia’s insights highlight the potential impact of ETFs and user-friendly platforms in driving the adoption of Bitcoin among institutions and retail investors alike.