Corporate Adoption Lags Despite Bitcoin ETFs
Corporate involvement and confidence in the cryptocurrency sector remain nascent, even after the previous sanctioning of the first spot Bitcoin exchange-traded funds (ETFs). The regulatory green light for the initial spot Bitcoin ETFs in the United States was seen as a pivotal moment for legitimizing the cryptocurrency industry, as it introduced the first publicly traded Bitcoin (BTC) products to the market. Corporate engagement is still considered to be in its early stages, described by Marc Degen, the co-founder and chairman of Trust Square, a technology hub focused on blockchain, as the “amateur league.”
Speaking at the Web3 Corporate Innovation Day, Degen critiqued the level of corporate adoption, characterizing it as a significant failure. He opined, “Corporate adoption is just complete utter failure. It’s amateur league against the pros.” His critique hinged on comparing the inflows of spot Bitcoin ETFs with the inflows in traditional finance. He elaborated by stating, “Everybody is stoked about the Bitcoin ETFs, [which] collected about $60 – $70 billion year to date in inflows. All digital asset funds have a year-to-date inflow of about $100 billion. Well, that’s half of what JPMorgan alone has delivered in the last ten years.”
Since its inception, U.S. spot Bitcoin ETFs have gathered $58.4 billion in total on-chain holdings. This figure pales in comparison to the $489 billion worth of net new client inflows JPMorgan has amassed in 2023 alone, according to Jeremy Barnum, the chief financial officer for JPMorgan, during an earnings call. This data highlights that JPMorgan’s inflows are over eight times that of the combined inflows of the eleven U.S. spot Bitcoin ETFs.
The slower digital asset adoption can largely be attributed to the lack of widespread trust in the crypto sector. According to a 2023 survey by Pew Research Center, around 75% of individuals familiar with crypto expressed doubts about its reliability and safety. Degen posits that despite the decentralized nature of cryptocurrencies, the involvement of corporations is crucial to fostering more trust among mainstream users. He stated, “We have a lack of trust in the [crypto] market. And only corporates can solve this.”
Newcomers to the crypto world often prefer corporate-backed centralized exchanges (CEXs) over decentralized exchanges (DEXs), a preference reflected by the trading volume differences between the two. For instance, in the past 24 hours, DEXs reported a cumulative trading volume of $3.86 billion. This is significantly lower, nearly five times less, than the $17.6 billion trading volume recorded by Binance, the largest CEX globally.
To understand the broader scope of institutional involvement in the cryptocurrency market, one can’t solely rely on the cumulative inflows into Bitcoin ETFs. This approach doesn’t account for various factors at play, such as the significant outflows attributed to Grayscale’s Bitcoin Trust ETF (GBTC). To date, Grayscale’s GBTC has offloaded 18,207 BTC, worth over $1.19 billion, which constitutes the bulk of the outflows, based on data from Farside Investors.
This scenario underscores the nascent stage of corporate engagement in the crypto market compared to traditional financial sectors. Despite the substantial inflows into Bitcoin ETFs, traditional financial entities like JPMorgan still significantly outpace the crypto industry in terms of attracting new investments.
To propel the wider adoption of cryptocurrencies, building trust remains essential. Corporations could play a pivotal role in this regard, bridging the current trust gap that prevents mainstream users from fully embracing digital assets. Enhanced participation from established corporate entities could potentially galvanize greater confidence and drive further adoption of cryptocurrencies.
While the approval of spot Bitcoin ETFs exemplifies growing regulatory acceptance and a step towards mainstream legitimacy, the path to widespread corporate adoption and trust in the cryptocurrency sector is still long. Concerted efforts from both the crypto industry and corporate entities will be required to foster a more trusting and robust ecosystem for digital assets.
36 thoughts on “Corporate Adoption Lags Despite Bitcoin ETFs”
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Despite the regulatory nod, corporate involvement still feels like a cursory nod rather than a committed effort. 😕
The staggering lack of trust is a major hurdlethis isn’t going to fix itself. Corporates, where are you?!
For all the talk, Bitcoin ETFs have done little to truly catalyze corporate adoption. It’s still a fledgling scene.
Such a detailed breakdown! Corporates can indeed make a significant difference in the crypto ecosystem.
Interesting analysis! The crypto industry will benefit immensely from increased corporate participation.
So much potential in the cryptocurrency space! Corporate involvement is crucial for broader adoption. 💼
A very informative piece! The endorsement from corporates can bridge the trust gap in the crypto market.
Very enlightening! Corporate support is key to addressing the trust issues in crypto. 🌐
What a comprehensive analysis! The involvement of companies will certainly build trust in the crypto sector. 🌍✨
Amazing read! The role of corporations in building trust can’t be overstated. This is just the beginning!
Marc Degen hit the nail on the headcorporate adoption is in the amateur league. This is embarrassing at this stage.
Loved reading this! Corporate backing will help mainstream users embrace crypto safely. 🛡️
Brilliant article! Corporate involvement is crucial for the wider adoption of cryptocurrencies.
Spot on! Building trust through corporate engagement is essential for crypto’s future.
Great read! Trust is crucial, and corporations can play a big role in fostering it.
Insightful perspective! With corporate support, we can achieve widespread crypto adoption. 📈
How can we even discuss ‘mainstream legitimacy’ when corporate engagement is still barely off the ground?
We need more than flashy announcementscorporates must actively participate to build trust. Right now, it’s just smoke and mirrors.
Thought-provoking! Corporate engagement will definitely push crypto into the mainstream.
The data presented here is eye-opening. Corporations hold the key to unlocking crypto’s full potential! 💡
Great overview! 🙌 Corporate engagement is key to mainstream crypto adoption. Let’s hope more businesses join the revolution.
Fascinating read. Corporate participation is indeed vital for the next phase of crypto adoption.
How can we expect mainstream adoption when 75% of people still don’t trust crypto? This is going nowhere fast.
Absolutely fascinating read . It’s clear that corporations can bridge the trust gap in the crypto world. Exciting times ahead!
The numbers speak for themselves. JPMorgan’s inflows completely overshadow what’s been achieved with Bitcoin ETFs. It’s a joke.
Great insights here! The role of corporates in building trust in the crypto world is undeniable. 🌟
Insightful perspective on the state of corporate engagement in crypto. Trust is essential, and corporates can lead the way.
Comparing traditional finance inflows to crypto, it’s clear one’s playing chess while the other’s playing checkers.
Fantastic insights! Corporations can transform the crypto landscape by bridging trust. Can’t wait to see more engagement.
This article hits the nail on the head. Corporate involvement is what’s needed to build trust in crypto. 🔑
Absolutely spot on! Corporate involvement will galvanize confidence and drive adoption.
These corporate entities need to step up their game. The enthusiasm for Bitcoin ETFs is not translating into concrete action.
It’s mind-boggling that even with the legitimation of Bitcoin ETFs, the corporate world is still so hesitant. What a letdown.
Seriously, with figures like $489 billion for JPMorgan and only $100 billion for all digital assets, the disparity is outrageous.
Honestly, Degen is right. It feels like we’re stuck in the minors while traditional finance is hitting home runs. 🤷♀️
Very well-written! Trust is the main hurdle, and corporate backing is definitely the solution.