Over the past few years, few things have managed to saturate the public conscience more than cryptocurrencies. Not only have they become one of the most lucrative assets for anyone to invest in, but it is also becoming a very reliable alternative to traditional currencies. So even though people have invested in a crypto, they can still continue to buy different things with it.
Companies were especially quick to jumbo towards crypto, given the incredible popularity that it had. And despite its very volatile nature, the market continues to see more and more people come in to invest.
Even countries have decided to adjust to the growing relevance of cryptocurrencies. Whether they are working on ways to better regulate the industry, or are working on their own crypto, almost every country in the world understands that it is too big to ignore. And when countries have started to accept something, it was only a matter of time before even the stock market followed.
The New York Stock Exchange hosted the first-ever crypto ETFs this past week. More specifically, they had hosted the new Bitcoin ETF, which instantly broke records upon launch. In a single day, over a billion dollars of shares were brought in by the first crypto ETF. Following the very most successful launch of any ETF in history, even the price of Bitcoin saw a remarkable rise of 4%.
And despite the incredible success of cryptocurrency-based ETFS, it could be something that stands against what the entire market stands for. The original purpose of cryptocurrencies as a whole was to introduce a new financial service. It mainly existed to stray away from the traditional realms of finance, which is what they were able to do through blockchain technology.
However, traditional finance was able to catch up to cryptocurrencies. And instead of breaking away from it, traditional finance was able to turn it into something that institutional investors would love to get in on. Now, through this new ecosystem, Wall Street will be able to make billions in a short span of time.
But despite these ETFs being something that stands against the original message of cryptocurrencies that will not stop companies from developing their own ETFs. With just how successful the recent launch of the Bitcoin ETF has been, it only makes sense that others also want in. so it is safe to assume that people will be seeing a lot more funds pop up in the stock exchange.
As for its future, these new funds show that it might be harder for cryptocurrencies to completely overtake fiat currency. However, they can still coexist and benefit each other.