Bitcoin (BTC) has made significant strides as an asset class and 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, signifying steady growth. However, there is still a long way to go in terms of widespread adoption, especially among businesses that are not yet using digital assets for fast and secure transactions.
According to Mike Novogratz, CEO of Galaxy Digital Holdings Ltd and a seasoned crypto veteran, mass adoption of Bitcoin is imminent due to increasing institutional demand. In a recent Bloomberg interview, Novogratz pointed to the frenzy surrounding Bitcoin exchange-traded funds (ETFs) from big 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 needed administrative changes at the Securities and Exchange Commission (SEC) to develop with other markets.
Novogratz notes that despite the administrative changes, the SEC remains hesitant to approve Bitcoin ETFs. Current SEC chairman Gary Gensler, who was initially seen as supportive of the crypto industry, has taken a tougher stance by advocating for a stricter classification of crypto projects under securities laws. This approach, according to Novogratz, hinders the innovation and growth of new technologies.
Nevertheless, Novogratz expects the SEC to eventually approve several Bitcoin ETFs, marking a significant milestone in mainstream adoption. He highlighted the involvement of leading investment firms such as BlackRock and Invesco as a positive sign. Novogratz believes that the approval of a Bitcoin ETF by the SEC will 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 encountering resistance at $31k, it continues to dominate the industry with a market share of around 51.48%. However, Ethereum co-founder Vitalik Buterin suggested that Bitcoin should use a layer two (L2) scaling solution such as the lightning network to increase its usability 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 the digital asset to wider use as a trusted and efficient financial instrument.