In the aftermath of last year’s cryptocurrency market crash, the CEO of trading platform eToro, Yoni Assia, believes that the growing interest in exchange-traded funds (ETFs) among institutions and the accessibility of investing through various platforms for non-professionals could drive further adoption of Bitcoin (BTC).
Speaking at the recent Abu Dhabi Finance Week, Assia explained that institutions typically have established systems in place and are hesitant to build new infrastructure for different asset classes. However, Bitcoin ETFs align with their existing operations, making it easier for them to enter the market without developing new frameworks. Assia stated:
“The availability of a Bitcoin ETF would enhance Bitcoin’s credibility in the eyes of institutional investors and could potentially support the asset’s price, as it represents a familiar and institutionalized form of investment.”
Assia believes that the introduction of a Bitcoin ETF would contribute to the legitimacy of Bitcoin and attract more institutional investors, thereby positively impacting its price. In October, Bitcoin surpassed $35,000, reaching a price not seen since May 2021, partly driven by anticipation surrounding the approval of spot ETFs. Since then, the leading cryptocurrency has been fluctuating between $37,000 and $38,000.
Assia also emphasized the importance of user-friendly platforms and the integration of Bitcoin into diverse investment portfolios in order to attract more retail users to the market. He stated:
“On a retail level, it’s all about the user experience, simplicity, and the ability to incorporate crypto investments and trading into a broader portfolio.”
Despite a decline in global grassroots cryptocurrency adoption, a recent report from blockchain research firm Chainalysis revealed that lower-middle-income countries such as India, Nigeria, and Ukraine have experienced the most significant recovery in grassroots adoption over the past year. These findings, combined with the increasing institutional adoption in high-income countries, indicate promising prospects for the future of crypto.
Assia believes that Bitcoin’s adoption is driven by people recognizing the need for non-confiscatable, censorship-resistant digital currency. He predicts that over time, more individuals will understand the importance of accumulating crypto, similar to how some investors view gold and other commodities.