Interests in cryptocurrency Exchange Traded Funds (ETFs) seems to have peaked in the past week following several reports of ETF applications, rejections, and deferred decisions. Vitalik Buterin, the co-founder of the second largest cryptocurrency blockchain major influence in the cryptocurrency space, have contributed to the discussions about ETFs.
In a tweet on Sunday, Buterin advised the crypto community to look beyond bitcoin and ethereum ETFs to other ‘better’ means of increasing actual adoption of cryptocurrencies.
“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.”
Institutional Investors Versus Mainstream Adoption of Cryptos
Since December last year when two of the biggest US exchanges CBOE and CME launched bitcoin futures contracts, the cryptocurrency community have been swayed by the influx of money from institutional investors. Several financial companies have launched cryptocurrency trading products targeting institutional investments.
Buterin, through his tweet, would rather those efforts be channeled to grow the infrastructure to allow the public to invest more easily in digital assets. A recent damning report claimed that only about 2 percent of the American population actually owned cryptocurrency. It is against such statistics the Buterin, who is a strong advocate for purposeful crypto projects, suggests that the industry focuses on practical applications that will make cryptocurrencies widely available.
Josh Goodbody, an executive of Huobi UK, in a recent interview with crypto news outlet NewsBTC highlighted the importance of Institutional investors in the cryptocurrency space. In defense of Institutional money, Goodbody said that “bringing in asset classes and financial vehicles into the crypto space will give investors the exposure they’re comfortable with” noting that it is an option for some people may not want to directly own cryptocurrencies.
Recently, the SEC postponed its decision on five Bitcoin ETFs applications by Direxion Investments to September 21. It also rejected the ETFs proposal by Cameron and Tyler Winklevoss, who own the Gemini Exchange platform. The push for ETFs are not slowing down, however, as Digital asset manager, Bitwise sent in applications for ETFs on Tuesday.