Nischal Shetty, the co-founder of Shardeum, has offered insights into the evolving landscape of cryptocurrency, particularly regarding the impact of spot Bitcoin exchange-traded funds (ETFs). He emphasized that the emergence of these ETFs has significantly integrated Bitcoin into the traditional financial framework, providing institutions with a regulated pathway to gain exposure to the digital asset.
Shetty noted that the recent ETF approvals have not only legitimized Bitcoin but have also simplified participation for major financial firms without necessitating changes to their custody arrangements. This development has reduced internal friction, addressing one of the primary obstacles to institutional adoption. However, he cautioned that ETFs represent just a fraction of a broader maturation process within the cryptocurrency market, which also involves regulatory advancements, enhancements in custody solutions, improved liquidity, and a more robust institutional infrastructure.
Despite Bitcoin recently reaching new all-time highs, the fluctuations surrounding these peaks have been less dramatic than in previous cycles. In an interview, Shetty remarked, “It”s a meaningful trend, but not a complete structural shift yet.” He pointed out that the reduced volatility observed at price peaks indicates that institutional investments are starting to stabilize speculative cycles. This trend suggests an increasing amount of institutional capital is entering the market, which tends to behave in a less emotionally driven manner compared to retail traders.
Shetty also explained how consistent ETF buying has fostered a more predictable demand for Bitcoin, thereby mitigating sudden price surges and drops. Nevertheless, he issued a warning: “Volatility can return when macro conditions change or when ETF flows slow down.” At this juncture, Shetty believes that we are witnessing the beginning of a more mature market cycle rather than a permanent change in Bitcoin“s price dynamics.
Looking toward the future, Shetty anticipates that both Bitcoin and Ethereum will undergo longer and more sustainable trends, moving away from the sharp, week-to-week price movements that characterized earlier market phases. This expectation hinges on continued positive ETF inflows and stable global monetary conditions. He emphasized that Bitcoin“s trajectory will primarily be influenced by central bank policies and how institutions incorporate it into their investment strategies.
In contrast, the future of Ethereum will depend largely on real-world usage, including the growth of tokenization, decentralized finance (DeFi), and developer activity on the blockchain. Shetty concluded by highlighting that while volatility is unlikely to vanish entirely, broader market participation could help cushion extreme price movements. “Long-term sustainable growth comes from real usage, not just speculative momentum,” he stated, reinforcing the notion that both Bitcoin and Ethereum require genuine utility to thrive.
