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To be or not to be, that is the Crypto question

NYSE listed 2 BTC-linked ETFs: Is crypto eating up traditional finance or is Wall Street just taming its challengers?

When you hear the word crypto, chances are high that you think of Bitcoin. After all, cryptocurrency has been making headlines this month, with an all-time high of more than $66,000. However, what if I tell you, crypto is now conquering the stock exchange?

Following the listing of two Bitcoin-linked exchange-traded funds (ETFs), ProShares (BITO) and Volt Equity (BTCR) on the New York Stock Exchange (NYSE), many would wonder if the crypto economy is overtaking traditional finance or is it just a Wall Street operation to tame its challengers?

As of writing, ProShares Bitcoin Strategy ETF was trading at $39.57 on the NYSE.

Price History of BITO in NYSE | Source: NYSE

Meanwhile, here’s the initial listing price of BTCR at $21.7021 on October 28, 2021. According to Volt Equity, their ETF is implementing a management approach informed by PlanB’s Bitcoin stock-to-flow (S2F) model, a major quantitative model intending to predict BTC’s price.

Listing Price of BTCR in NYSE | Source: NYSE

Crypto: Taking over traditional finance

Traditional financial institutions and policymakers are wary of the potential that DeFi holds, which is why some institutions have been vocal critics of it. DeFi, however, levels the playing field for the average person and allows them to reap whatever benefits they can get from the system.

Possibly, this explains why the crypto industry has seen a rise in traffic following the crackdown on stock investing options. Similarly, this could be the driving force behind many others to choose DeFi and crypto.

One of the biggest selling points of cryptocurrency is its transparency and openness. With traditional finance working more in favor of the elite and attempting to eliminate any notable competition, the masses suffer more than they should. Crypto, on the other hand, represents an incredible opportunity for everyone to grow wealth.

Is Wall Street just taming the challenger?

Many cryptocurrency enthusiasts believe that Wall Street is just another eager investor, eager to pump cash into the growing crypto market and enjoy the same returns that retail traders have enjoyed every time cryptocurrency values have soared. Two things, however, make this projection misguided: first, Wall Street is already neck-deep in the cryptocurrency sector; and second, Wall Street is the last institution to try to pump its own money into the precarious cryptocurrency market.

The cryptocurrency space has provided many opportunities for institutional finance to make money. In spite of the many potential sources of revenue found in crypto, and the field has enjoyed a surge in popularity in recent years, the future of crypto’s relationship with Wall Street and the general investing public remains to have many uncertainties. Nevertheless, it appears Wall Street is slowly taming the challenger (either intentionally or by accident).

Check out related articles:

Breaking the Ice: First Bitcoin-focused ETF “Volt Equity” Approved by SEC

Crypto ETFs: Why is SEC concerned?

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