Bitcoin (BTC) has made significant strides as an asset class and a form of payment, but its adoption remains limited compared to the total global population. A recent study conducted by Triple-A revealed that there are now over 420 million crypto users worldwide, signaling steady growth. However, there is still a long way to go in terms of widespread adoption, especially among businesses that have yet to embrace digital assets for fast and secure transactions.
According to Mike Novogratz, CEO of Galaxy Digital Holdings Ltd and a seasoned crypto veteran, the mass adoption of Bitcoin is imminent due to increased institutional demand. In a recent Bloomberg interview, Novogratz pointed to the frenzy surrounding Bitcoin exchange-traded funds (ETFs) from major investment fund managers as evidence of the growing demand for Bitcoin as an asset class. However, he emphasized that the cryptocurrency industry in the United States needs a change in administration at the Securities and Exchange Commission (SEC) to flourish alongside other markets.
Novogratz noted that despite a change in administration, the SEC has remained hesitant to approve a Bitcoin ETF. The current SEC chair, Gary Gensler, who was initially seen as supportive of the crypto industry, has taken a stricter stance by advocating for stricter classification of crypto projects under securities law. This approach, according to Novogratz, hampers innovation and the growth of nascent technologies.
Nevertheless, Novogratz expects the SEC to eventually approve multiple Bitcoin ETFs, marking a significant milestone in mainstream adoption. He highlighted the involvement of prominent investment firms such as BlackRock and Invesco as a positive signal. Novogratz believes that approval of Bitcoin ETFs by the SEC would serve as a seal of approval from the US government, providing legitimacy and confidence in Bitcoin as an asset.
While Bitcoin has recently consolidated around the $30k mark after facing resistance at $31k, it continues to dominate the industry with a market share of approximately 51.48%. However, Ethereum co-founder Vitalik Buterin suggests that Bitcoin should embrace layer two (L2) scaling solutions like the lightning network to enhance its utility as a payment method and diversify its functionality.
As Bitcoin moves closer to mainstream adoption, the industry eagerly awaits regulatory developments and institutional support that could propel digital assets into wider use as a trusted and efficient financial instrument.
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