Despite recent BTC ETF applications from several Wall Street Players, there is still a belief that they constitute a big threat to the global adoption of crypto. Wall Street is a collective name for firms like stock exchanges, investment banking companies, brokerages and broker-dealers, and many more. All the firms that fall under the under-listed categories symbolizes Wall Street.
How the term “Wall Street” became the umbrella name for financial firms
Literally, Wall Street is the name of a street at the southern end of Manhattan, New York. This street hosts scores of traditional financial firms, particularly brokerages, and banking companies. The heavy presence of these firms on this Street led to the connotation of the name. Therefore, those financial institutions got the name from such roots. With this, the name became the umbrella term for every firm that engages in public trading in the United States.
Today, emerging developments in the financial market have pushed these firms beyond the street. However, they still maintain the umbrella name. This means being on the Street in Manhattan is no longer essential for financial institutions to retain the collective name. Presently, there are many of these firms located elsewhere. Their economic presence is felt within the United States and beyond.
Bitcoin ETF Filings
Some of the popular firms that fall under the “Wall Street” category include BlackRock, Fidelity, Bitwise, and many more. BlackRock remains the biggest asset manager across the globe, with over $8 trillion in assets under its management. Recently, it filed an application with the SEC to offer spot Bitcoin ETFs, citing increasing demand from customers. Similarly, the likes of Fidelity and Bitwise have also filed the same applications with the U.S. regulator.
Although these applications are yet to be approved, members of the crypto community are excited to have Wall Street players seeking exposure to Bitcoin. But, some experts feel the approval of such applications could spell danger for widespread crypto adoption. One of the critics, Robert Kennedy Jr. described the crypto revolution by the players as a “wolf in sheep’s clothing.” The U.S. presidential candidate believes the development would jettison the financial freedom of investors, making them vulnerable to the government’s planned CBDC. Kennedy Jr. said he won’t be astonished to see BlackRock convert its ETF from Bitcoin into digital dollar.
Effect of Wall Street Players on Crypto Industry
The entry of prominent companies from Wall Street to an extent has impacted the crypto space positively. The growing interest from the TradeFi industry is a strong projection of how far cryptocurrency has come. However, their interest in the crypto landscape can help push the widespread adoption of cryptocurrency. This is due to how Wall Street veterans are showing interest in cryptocurrency and the advocacy that will come thereafter.
To an extent, these firms has introduced various crypto initiatives like the Bitcoin ETF. More so, the Bitcoin ETF has bolstered the confidence of retail and institutional investors that indeed, cryptocurrency is a reliable instrument of investment. The Bitcoin ETF has helped reduce investors’ exposure to the volatility of cryptocurrency. Consequently, paving the way for more institutional and retail investors. The presence of these firms in the virtual assets marker will reward more companies to take virtual assets as a nascent asset class
Furthermore, the growing stature of Wall Street in the virtual space could also help fast-track the widespread adoption of cryptocurrency. Wall Street consists of various influential figures who can lobby the government for the introduction of a clear-cut regulation. Up to this moment, cryptocurrency has yet to hit mainstream adoption as a result of the absence of proper regulation. With the presence of influential individuals from Wall Street, there is growing confidence that they could influence proper regulation for the industry. Ultimately, leading to mainstream adoption.
However, crypto enthusiasts can raise concerns about the widespread adoption of cryptocurrency owing to how these Wall Street giants have controlled the Traditional Financial market. There are concerns that Wall Street is venturing into the crypto space because it feels threatened. Therefore, aiming to venture into the market with the sole focus of controlling it. Nevertheless, the decentralized posture of the crypto landscape will make it difficult for them to control its market.
Conclusion
Without a doubt, the presence of Wall Street can affect the widespread adoption of cryptocurrency. Such a possibility is quite difficult to actualize due to how the presence of these firms have demonstrated more good sides than its bad ones.