Traditional finance tools are transforming crypto investing, making it more accessible and less intimidating.
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2 min read
Traditional Financial Tools Pave the Way for Crypto Accessibility
In a significant shift for the cryptocurrency landscape, traditional financial tools are increasingly being adapted to make crypto investing more accessible to both individual and institutional investors. This evolution is helping digital assets mirror more familiar investment structures, thereby reducing the perceived complexity and risk traditionally associated with cryptocurrencies.
Index Funds and ETFs: Bridging the Gap
Related: Legal Crypto Staking in 2025: SEC Guidelines Explained
Index funds and exchange-traded funds (ETFs) are playing a pivotal role in this transformation. According to Ryan Rasmussen, head of research at Bitwise Asset Management, there is a growing demand for crypto products that resemble traditional financial instruments. “Our investors are seeking exposure to the crypto economy through familiar vehicles,” Rasmussen noted. This demand has led to the development of crypto index funds that function similarly to the S&P 500, offering diversified exposure to digital assets like Bitcoin and Ether.
Bitwise, which manages nearly $15 billion in crypto-focused products, emphasizes that these tools are designed not just for convenience but for enhancing accessibility and scalability. By using these funds, investors can indirectly hold crypto assets, which are stored securely in cold storage with custodians such as Coinbase and Anchorage. This structure alleviates the operational challenges that financial advisors face when dealing with direct crypto investments.
Related: Lido's Dominance Eases as 160,000 ETH Leaves, Binance's Liquid Staking Platform Sees Growth
The Rising Role of Staking
Staking, a crucial component of proof-of-stake networks, is also gaining traction as a mainstream investment strategy. Despite regulatory uncertainties in the United States, Rasmussen is optimistic about its future role. “We believe staking will eventually be recognized as a standard service for investors,” he stated, highlighting its potential to generate returns while supporting network security.
The regulatory landscape is gradually shifting, with increased clarity encouraging major financial institutions to explore crypto investments. This regulatory evolution is seen as a significant catalyst for the industry, potentially rivaling the impact of Bitcoin ETFs.
Related: Key Events of 2024: the Impact of ETFs on the Cryptocurrency Space
Looking Ahead
As traditional financial tools continue to integrate with the crypto world, the barriers that once deterred investors are being dismantled. This trend is likely to accelerate as regulatory frameworks become more defined and as more financial institutions recognize the potential of digital assets.
For a deeper dive into these developments, the full discussion with Ryan Rasmussen can be accessed on the “Clear Crypto Podcast,” available on Cointelegraph’s Podcasts page, Apple Podcasts, and Spotify.
Michael has been a vital voice in crypto security, focusing on blockchain vulnerabilities and emerging technologies. With a background in cybersecurity and fintech, he ensures our readers stay informed on safeguarding their assets while exploring new opportunities in the crypto space.
