Cryptocurrency Exchange Trade Funds (ETFs) look to remain popular, even as more and more people learn how to use their wallets. According to ARK Invest Cathie Wood, many investors will stick with ETFs because they prefer an easy, clickable selection.
At an event in New York on May 23, she said that wallets can be too tricky for most users.
The adoption of crypto wallets and ETFs are convenient
According to the report, about 200 million active Bitcoin wallets are used worldwide. However, between May 17 and May 23, new funds for U.S. spot Bitcoin ETFs were nearly $2.7 billion.
Bitcoin even hit a record high of $111,985 on May 22. People seem to trust ETFs more than building their own wallets right away. ETFs can reside in regular brokerage accounts, so you don’t need additional applications or backup phrases.
https://www.youtube.com/watch?v=jxnfgp07hpk
ETF inflows rose since launch
According to Farside Data, the Spot Bitcoin ETF was launched in the United States in January 2024. Since then, their revenue has been around $445 billion. In July 2024, the live ETER ETFs began and so far they have attracted about $2.75 billion. This is very interesting for both Bitcoin and Ether.
But the Ether ETF did not take off quickly. The SEC does not allow money to make in these funds, making them less attractive to some investors seeking returns.
Aging Problems in Ether Funding
According to Wood, the pile will make the ether ETF more attractive. Staking can be rewarded by locking coins. Without it, these ETFs simply hold tokens, so they don’t compete with the direct competition in that protocol.
On May 21, the U.S. Securities and Exchange Commission (SEC) delayed its decision to add Stigaking to Bitwise’s Ether ETF. This move can keep some investors on the sidelines until the rules change.
Image: CaanBerry
Solana’s Memecoin mistake
Wood also pointed out that Solana may scare older investors. U.S. President Donald Trump launched a memorial called Official Trump in Solana on January 17.
Just a few days later, when there were no crypto-related orders on his first day in office, it fell by about 50%. The roller coaster may have caused some consultants to think twice about Solana’s reliability.
Solana price down in the last day. Source: Coingecko
Watch carefully
Wood believes crypto ETFs will remain an “insurance policy” for people who are worried about traditional markets. At the same time, they act as bridges. She hopes new investors start with Bitcoin or Ether in ETFs and then go into wallets to explore things like smart contracts and other tokens.
Ark’s own price predictions are bold. By the end of 2030, the company raised its Bitcoin Bull case to $2.5 million. Wood said she is still working on achieving her Solana Target and will share after more research.
Featured images from Unsplash, charts for TradingView
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