Ethereum Co-founder criticises emphasis on ETFs

Buterin Vitalik, the Co-founder of Ethereum, believes the cryptocurrency community has put too much emphasis on exchange-traded funds (ETFs) at the expense of enabling crypto payments by the public.

Vitalik says that although ETFs will benefit cryptocurrency prices, making it easier for people to use crypto will boost its mass adoption.

“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores,” he wrote on Twitter. “The former is better for pumping price, but the latter is much better for actual adoption.”

The comments drew a lot of responses, with one user stating that being able to earn crypto seems more likely to spur adoption than being able to buy small amounts. He points out that when you earn cryptocurrency, you don’t have to convert it to fiat.

Another argues crypto functions as an investment as well as a medium of exchange. “ETFs simplify the investment aspect, while cards/payment solutions would simply the medium of exchange use case,” he says. “Both are important.”

Vitalik suggests pre-loaded crypto payment cards would not be spent in a shop, but would be used to pay for transaction fees and micropayments in applications. This type of preloaded card already exists in Spain, where Bitnovo offers loaded Bitcoin cards at 50 Carrefour stores.

A Bitcoin ETF proposed by the Winklevoss brothers was recently declined again by the US Securities and Exchange Commission (SEC). The SEC is currently considering an application for a Bitcoin ETF from CBOE, the world’s largest futures exchange, and is expected to give its decision on 10th August.