Adam Back praises the success of Bitcoin ETFs! A milestone towards maturity?

Cryptographer Adam Back recently highlighted a significant milestone for Bitcoin. Meanwhile, the newly launched ETFs on crypto have already surpassed $10 billion in assets under management. According to him, this success confirms the increasing maturity of Bitcoin as an asset class.

Bitcoin ETFs Endorsed by Investors 

Approved in January 2024 in the United States after years of anticipation, the first Bitcoin ETFs have indeed experienced a spectacular reception. Barely a month after their launch, these indexed funds have already collected more than $10 billion in assets, a record. 

The largest one, BlackRock’s IBIT ETF, alone accounts for nearly $4 billion. Both Fidelity and Ark Invest have also surpassed one billion dollars in assets, while Grayscale records significant outflows from its GBTC product. 

This appetite confirms the strong interest of investors in these vehicles that allow them to simply gain exposure to Bitcoin without directly owning it. The inflows are expected to accelerate in the coming months, as these new products are widely adopted.

Towards the Maturity of Crypto

For Adam Back, this striking success marks a decisive turning point. It highlights the growing integration of Bitcoin into traditional finance, and its maturation as an asset class in its own right after more than a decade of existence.

Some experts compare this movement to the adoption of Bitcoin by Tesla and Square in 2021. The enthusiasm generated by the ETFs could similarly accelerate the democratization of crypto among the general public and institutional investors.

Especially since Bitcoin’s correlation with gold is deepening. Its unique position as a decentralized and antifragile digital asset could make it a new generation store of value. ETFs reinforce this view by making it easier to allocate a portion of portfolios towards Bitcoin.

Therefore, the recent enthusiasm for Bitcoin ETFs, hailed by Adam Back, could open a new chapter for crypto. From a tech enthusiast niche, Bitcoin may be entering an era of maturity, earning its stripes as a leading financial asset within diversified portfolios. A small step for the industry, but a giant leap towards democratization.

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