Despite the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States, corporate adoption and trust in the cryptocurrency industry remain in their early stages.
The regulatory green light for the first spot Bitcoin ETFs was seen as a significant milestone for the legitimacy of the crypto industry, bringing the first publicly traded Bitcoin (BTC) products to the market. However, according to Marc Degen, co-founder and chairman of Trust Square, a blockchain technology hub, corporate involvement is still very limited.
Speaking at the Web3 Corporate Innovation Day, Degen expressed his concerns:
“Corporate adoption is just a complete and utter failure. It’s the amateur league against the pros.”
To illustrate his point, Degen compared the inflows of spot Bitcoin ETFs to those in traditional finance. He highlighted:
“Everyone is excited about the Bitcoin ETFs, which have collected about $60 – $70 billion year-to-date in inflows. All digital asset funds have a year-to-date inflow of about $100 billion. However, JPMorgan alone has delivered over half of that amount in the last ten years.”
Since their launch, U.S. spot Bitcoin ETFs have amassed $58.4 billion worth of total on-chain holdings, according to Dune. In contrast, JPMorgan, a major player in traditional finance, has brought in a record $489 billion worth of net new client inflows during 2023, as reported by Jeremy Barnum, JPMorgan’s chief financial officer, during an earnings call in January.
Summary Review: This comparison underscores the substantial gap between corporate adoption in the crypto industry and traditional finance, with JPMorgan alone attracting over eight times more inflows than the combined total of the eleven U.S. spot Bitcoin ETFs.Summary Review: Despite the regulatory approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States marking a significant milestone for the crypto industry, corporate adoption remains in its nascent stages. Marc Degen, co-founder and chairman of Trust Square, emphasized that corporate involvement is still in the “amateur league,” especially when compared to traditional finance giants like JPMorgan. The inflows into spot Bitcoin ETFs, while impressive within the crypto space, pale in comparison to the substantial inflows seen in traditional finance. JPMorgan’s record $489 billion in net new client inflows in 2023 alone starkly contrasts with the $58.4 billion amassed by all U.S. spot Bitcoin ETFs combined. This disparity highlights the need for the crypto industry to mature further to gain the trust and adoption levels seen in established financial sectors. Despite the initial progress, significant efforts are required to bridge the gap between crypto and traditional finance, paving the way for broader corporate trust and mainstream adoption in the future.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
