Kraken CEO shares his thoughts on what the approval of spot Bitcoin ETF means for the crypto industry.
People have very high expectations of the crypto market gaining positive momentum since the SEC approved listings of spot Bitcoin ETFs.
At the start, doubts were looming about the crypto market’s direction, especially since the heavy outflows of Bitcoin from Grayscale made it look like the market was heading toward a downward position.
However, since the rate of outflow has subsided and the performance of other spot Bitcoin issuers is improving, Bitcoin has stabilized and started its move up again, as it is currently trading at $43,000 at the time of writing.
Another person who has jumped onto the boat of sharing hope with the crypto community of the approval of ETFs, giving the crypto market a much-needed boost, is the current CEO of the Kraken Crypto exchange, David Ripley.
Ripley gave an interview to Bloomberg Crypto, stating that he was feeling bullish about the impact the spot Bitcoin ETFs can have on the crypto industry.
His justification for showing his confidence relied on the fact that these spot Bitcoin ETFs will give the investors a new point of access to invest in crypto, and this unique access point will be easier to understand for newcomers and will provide them with a less technical path to gain exposure to Bitcoin.
He also said that this ease of access is what the Kraken exchange wants to achieve in its mission to expand cryptocurrency adoption.
He also believes that the SEC’s approval gave other institutional investors the confidence to invest in cryptocurrency.
The SEC’s approval cleared their doubts if they were apprehensive due to regulatory concerns.
Ripley also thought about how these exchange-traded funds (ETFs) are not just some investment vehicles; he believes these ETFs will act as a catalyst to help expand the crypto ecosystem throughout the financial world.
He said he wouldn’t even act surprised if the newcomers to the crypto industry would opt to choose ETFs instead of trying their trading skills on crypto exchanges like Kraken or Coinbase.
Ripley said that this will be considered a natural course of way for the evolution of the crypto industry.
He emphasized that there are still some unique offerings of crypto exchanges, which the ETFs don’t provide, like having direct ownership of your chosen crypto asset like Bitcoin.
Ripley believed such distinct characteristics would still prove instrumental in gaining new clientage towards cryptocurrency exchanges. Nowadays, people would like hands-on experience when dealing with crypto.
In reply to a question about whether or not Kraken will be looking towards changing its fee structure, especially after receiving competition from the Bitcoin ETFs, Ripley said there are no current plans for reorganizing the fee structure.
He clarified that the services given by Bitcoin ETF providers are different from what Kraken is offering to its customers as they cater to two different segments of the crypto market.
Additionally, Ripley explored Kraken’s involvement in custody services, highlighting its well-established commitment to security and its identity as a security-focused firm operating an exchange platform.
A key element of Kraken’s business approach involves leveraging a specialized depository institution license granted in Wyoming.
The crypto-specific license empowers Kraken to provide distinct services, particularly advantageous during events such as forks, thus delivering extra confidence and capability to its clientele.
Introducing spot Bitcoin ETFs is a significant milestone for the crypto industry. Everyone is anticipating its huge impact on the wider adoption of cryptocurrency and driving the prices of cryptocurrencies toward newer highs.
Different asset management companies like BlackRock and Grayscale are already working on their applications for spot Ethereum ETF approval, and the delay has been caused by the SEC as they believe that they deserve some more time to review the submitted applications.
For crypto exchanges like Kraken, this presents a chance to strengthen its position as a significant player in the industry. It also allows the company to persist in innovating and expanding its range of services in alignment with its mission to foster broader adoption of cryptocurrencies.
