Cryptocurrency Exchange-Traded Funds Setting Stage for Wider Mainstream Crypto Adoption

When the cryptocurrency and blockchain technologies were introduced, the initial goal of the crypto-sector was decentralization. However, it was revealed that the ultimate goal for the cryptocurrency industry was worldwide recognition.

Initially, it took the cryptocurrency sector a lot of effort and hard work to make it through the hard times. In the beginning, it took the cryptocurrency sector a lot of time to make the world believe that they were for the benefit of individuals.

The people weren’t trusting cryptocurrencies for their primary functionality, which meant providing decentralization. However, over the course of time, people did realize the importance of cryptocurrencies and blockchain technology.

With the passage of time, independent investors continued investing in cryptocurrencies. As a result, the demand for cryptocurrencies continued growth within the independent investment sector. As it continued observing gradual growth, it continue growing larger with time.

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The investors even started putting their trust into cryptocurrencies and they continued investing in cryptocurrencies on a larger scale.

However, the cryptocurrency sector was still not gaining the growth many cryptocurrency exchanges and other firms had wanted from them. After the initial goal, the secondary goal for the cryptocurrency sector was gaining mainstream attention.

Mainstream attention meant that the major institutions and companies from around the world would start adopting cryptocurrencies. Although the cryptocurrency sector did manage to gain mainstream attention towards the end of 2020, it still wasn’t enough for the industry.

The reason why Mainstream Institutions don’t want to Invest in Cryptocurrencies?

From time to time, regulatory authorities from around the world have pointed out the risks involved in cryptocurrencies. They criticized the very nature of cryptocurrencies, as to how decentralized, volatile, and full of risks they are.

Even when Bitcoin was launched, it had proven to be highly volatile. Due to its very nature, Bitcoin has been pronounced dead over 400 times by investors and analysts. Even then, Bitcoin is the most demanded asset in the entire world and even the gold investors have switched to the particular asset.

Despite all the profits and gains, Bitcoin is still decentralized, volatile, and has no physical value/existence. This is the reason why mainstream investors are reluctant in adopting cryptocurrencies.

The cryptocurrencies have no insurance and no regulations protecting the assets, making them full of uncertainties. This is more of a reason why mainstream investors do not want to invest in cryptocurrencies.

Exchange-Traded Funds (ETFs) are Solution to Mainstream Investors’ Problems

Over time, several mainstream institutions such as JPMorgan, Morgan Stanley, and Galaxy Digital have come up with innovation within the crypto-verse. They have gone through a lot of struggles to bring more and more mainstream institutions to the cryptocurrency sector.

However, they have come up with a different approach, where they have given the world the idea of launching exchange-traded funds for cryptocurrencies. This way, the mainstream institutions do not have to make direct investments in cryptocurrencies.

Instead of making direct investments in cryptocurrencies, the mainstream institutions get to invest in cryptocurrency stocks. This way, they have security and protection of their funds, as they won’t end up losing their funds or stocks to a fraud or a scam.

The exchange-traded funds are launched through the global stock exchanges. This way, cryptocurrencies have secured their existence in the global markets. They are now on the right track to gain mainstream and global adoption.

At present, several ETFs have been launched in Canada, South Africa, Japan, and now, the United States is ready to take the lead.

As of now, dozens of ETFs for Bitcoin, Ethereum, and many more cryptocurrencies awaiting approval from the US SEC. It is expected that the US SEC will approve these requests by the end of the first quarter of 2022. If that happens, the cryptocurrency sector will be able to unlock another level, making it convenient, and adaptable for mainstream investors. Even the exchanges have started launching ETFs and they have also started making changes to their crypto trading software to accommodate such assets.