In the wake of the cryptocurrency industry’s setbacks last year, eToro CEO Yoni Assia believes that the appeal of exchange-traded funds (ETFs) for institutions and the ease of investing through various platforms for non-professionals could further drive Bitcoin adoption.
Assia explained that institutions prefer not to create new infrastructure for each asset class and instead favor products like Bitcoin ETFs that align with their existing systems. This makes it easier for them to enter the market without developing new frameworks. He believes that the availability of a Bitcoin ETF would enhance Bitcoin’s legitimacy in the eyes of institutional investors and potentially support the asset’s price.
Bitcoin’s price surpassed $35,000 in October, driven in part by excitement surrounding spot ETF approvals. Since then, it has remained between $37,000 and $38,000.
Assia emphasized that the ease of investing in Bitcoin through user-friendly platforms and its integration into diverse investment portfolios are crucial for attracting more retail users to the market. He believes that the user experience, simplicity, and the ability to embed crypto investments into a wider portfolio are key factors for retail adoption.
A recent report from Chainalysis revealed that despite a decline in worldwide grassroots crypto adoption, lower-middle-income countries like India, Nigeria, and Ukraine have experienced significant recovery in adoption over the past year. This, paired with increasing institutional adoption in high-income countries, indicates promising prospects for crypto.
Assia believes that Bitcoin’s adoption is driven by people recognizing the need for nonconfiscatable, censorship-resistant internet money. He expects this understanding to grow over time, as more people recognize the value of accumulating crypto assets as they would with gold and other commodities.