DeFi
How DeFi is Becoming “NewFi” — TradingView News
As institutional interest in crypto grows, fueled by the introduction of Bitcoin and Ether exchange-traded funds (ETFs) in the United States, investors and industry players are hotly debating the future of decentralized finance and its relationship to traditional finance, or TradFi.
At the heart of the debate is whether institutional involvement in cryptocurrency is a positive or negative for the space. In a recent interview with Cointelegraph, James Toledano, COO of self-custodial wallet platform Savl, shared his thoughts on the future of finance.
The executive argued that institutional involvement in crypto would be positive for the long-term growth of cryptocurrencies, lending an air of legitimacy to the nascent asset class and the underlying technology in the minds of concerned individuals, particularly in older demographics.
Toledano approached the topic by acknowledging the potential for these large institutions to take over the crypto space by controlling all or a majority of the supply of a digital asset. However, he said such a project was unlikely, as “if they did, they would be shooting themselves in the foot because most people wouldn’t want to own it.”
Related: BlackRock’s Larry Fink Says He Was Wrong, Calls Bitcoin Digital Gold.
Rather, it is likely that self-custody options will make up the vast majority of the market, while financial institutions will continue to coexist alongside decentralized finance, interacting with distributed protocols in what Toledano called “NewFi” or “new finance.”
“I think if institutions held about 20% of these assets and sold them as spot ETFs or something, then 80% would be in public hands. That makes sense.”
Cointelegraph
Institutional Entries into Digital Asset Investment Vehicles
According to CoinShares’ latest weekly capital flows report, dated July 22, digital asset investment vehicles saw capital inflows of $1.35 billion during the seven-day period, driven primarily by investors in the United States.
On July 23, Spot Ether (ETH) exchange-traded funds launched on U.S. exchanges, recording over $1 billion in trading volume in a single day, demonstrating the intense institutional demand for crypto ETF products.
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