Ethereum co-founder Vitalik Buterin has said the blockchain community’s narrow focus on a cryptocurrency exchange traded fund (ETF) is not very healthy for the long term sustainability of the industry.
According to Buterin, while a cryptocurrency ETF would be a boost to the market, more emphasis should be placed on mass adoption of digital currencies for everyday transactions.
“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption,” Buterin said in a tweet on Sunday.
Following the SEC’s rejection of a bitcoin ETF proposal by the Winklevoss twins last week, the crypto community has grown increasingly restless over the implications of the rejection. The market in turn responded to the news with the price of bitcoin sliding by about a $100 before holding steady later in the day.
Bitcoin’s price had shot past the $8,000 mark in the days leading up to the SEC’s announcement as the market eagerly anticipated what many analysts believe would imply a quantum leap in the fortunes of bitcoin. But it was not to be, as the SEC turned down the Winklevoss proposal.
The Winklevoss ETF is however only one of a couple of other proposals submitted to the SEC and indeed not too many people were betting on it. The SEC is expected to rule on another high profile proposal submitted by the CBOE in partnership with VanEck and SolidX on or before August 16.
Many blockchain enthusiasts are of the opinion that a bitcoin ETF would herald the entry of institutional investors into the crypto space and consequently lead to wide spread adoption of digital currencies.
Buterin has however chosen to look beyond all of these externalities and is instead advocating for the actual adoption of cryptocurrencies by corner stores and household retailers. In addition, he prefers to focus on providing the necessary infrastructure to support bitcoin and ethereum, while creating better ways for the public to invest in major digital assets.