Crypto firms predict ETFs will unleash demand for Bitcoin-tied solutions, accelerating innovation in the Bitcoin ecosystem.
The launch of spot Bitcoin exchange-traded funds (ETFs) on Wall Street’s major exchanges on Jan. 11 is expected to have a ripple effect across the crypto industry, promoting new business ventures and attracting more developers to the Bitcoin ecosystem over time.
Opportunities are expected to stream across different sectors, and while predicting their full scope is premature, experts particularly anticipate growing demand in fields such as decentralized finance and scaling solutions.
Bitcoin-backed loans, for example, are one of the crypto products the Ledn platform anticipates gaining traction following the ETF approvals. “The ETF will normalize the concept of borrowing against your Bitcoin, and lending your Bitcoin or ETF shares to earn extra interest. Most of the world is not able to access U.S. listed products, but will still need and want to borrow against their Bitcoin and earn interest with it," Ledn’s CEO Mauricio Di Bartolomeo told Cointelegraph.
