Ethereum co-found Vitalik Buterin believes the crypto community has focused too much on the launch of an ETF. Instead, he believes mass adoption is the bigger catalyst.
“I personally think the current level of adoption is imbalanced, i.e. there’s relatively speaking too much investment and not enough usage,” he tweeted.
In fact, he notes that institutional direction is not where the cryptocurrency industry needs to go.
Instead, the industry needs to focus more on practical applications for digital currencies for everyday people. The goal would be to make crypto as widely available as possible.
“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,” Buterin tweeted. “The former is better for pumping price, but the latter is much better for actual adoption.”
However, according to General Counsel and CCO of Huobi UK, Josh Goodbody, as reported by News BTC, institutional interest and ETFs are essential.
“Bringing in asset classes and financial vehicles into the crypto space will give investors the exposure they’re comfortable with. Not everyone wants to hold private keys. As long as it’s launched by a reputable market participant, we think it’s a positive development for the industry.”
An ETF could Catalyze a Substantial Bull Run
Should the U.S. SEC approve proposed ETFs, the market could see a significant influx of capital from institutions and even more investors. That increase in overall demand would exert strong influence on price moving forward.
Co-founder and CEO of BitMEX Arthur Hayes says ETF approval could send Bitcoin to $50,000 this year.
“I think that something that goes up to $20,000 in one year can have a correction down to $6,000 and will definitely find a bottom at about $3,000 and $5,000 range. We’re one positive regulatory decision away — maybe an ETF approved by the SEC — to climb through $20,000 and even to $50,000 by the end of the year,” he said, as quoted by Crypto Slate.
While there are no price guarantees, it’ll be interesting to see what happens by year’s end.
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