Crypto ETFs May Undermine Core Benefits, Sygnum Bank Warns
- U.S. spot Bitcoin ETFs have accumulated $110 billion, representing 5.89% of Bitcoin’s market cap.
- Spot Ethereum ETFs hold $10.37 billion, equating to 3.15% of ETH’s market cap.
- Sygnum Bank argues that crypto ETFs limit trading hours and liquidity, reducing crypto’s appeal.
- Sygnum was the first digital asset bank licensed by Switzerland’s financial regulator, FINMA.
- The bank manages over $4.5 billion across 65 countries and achieved unicorn status this year.
Sygnum Bank claims that while U.S. spot Bitcoin and Ethereum ETFs have amassed significant funds, these traditional finance products diminish the inherent benefits of cryptocurrencies by imposing restricted trading hours and reduced liquidity.
Source (2.6)https://decrypt.co/306903/crypto-etfs-are-dragging-along-the-negatives-of-traditional-finance-sygnum?rand=52368
