- 21Shares’ Eliézer Ndinga says years of infrastructure work prepared crypto for institutional investors.
- Investment vehicles like ETFs helped traditional investors access crypto.
- Blockchain technology may unlock new financial applications.
Crypto markets are increasingly attracting institutional attention as the industry continues to mature. However, as per 21Shares’ Eliézer Ndinga, the road to institutional adoption has been shaped by years of infrastructure development and regulatory progress.
The 21Shares executive posited that the shift did not take place overnight but followed years of preparation across the industry. He added that much of the past decade has been focused on preparing the ecosystem.
21Shares Research Head Explains Institutional Crypto Adoption
In an interview, Eliézer Ndinga, the Research Head at 21Shares, stated that the crypto industry has spent several years building the foundation needed for institutional participation. He added that the market has gradually developed the infrastructure and regulatory environment that large investors require before allocating capital. He noted,
“For the last eight years, the entire globe has spent so much time to build institutional readiness for these institutions to come in and feel comfortable investing in this asset class.”
Ndinga explained that the biggest challenge for institutions was not necessarily the technology behind crypto. Instead, many investors were concerned about how they could safely access the market. Institutions often place just as much importance on the structure and investment vehicle surrounding an asset as they do on the asset itself.
How Crypto ETFs Opened the Door for Traditional Investors
Further, the 21Shares executive shared insights on how the crypto industry has matured and introduced new products to attract traditional investors. For many traditional investors, familiar financial products have played a key role in making crypto more accessible.
For example, instruments like exchange-traded funds (ETFs) allow investors to gain exposure to digital assets through the same brokerage accounts they use to buy stocks.
The path to crypto ETFs was long and challenging. In the United States, regulators rejected several early proposals before finally approving spot Bitcoin ETFs in 2024. The approval marked a major turning point, giving institutions and traditional investors a regulated way to enter the crypto market. He stated, “The technology has been battle-tested for the last couple of cycles.”
Companies like 21Shares were also early movers in this space. The firm launched one of the first physically backed Bitcoin exchange-traded products (ETPs) in Europe back in 2019. This helped create a bridge between traditional finance and the growing digital asset ecosystem.
Unveiling Blockchain’s Next Phase of Innovation
As the crypto industry continues to grow, experts believe the industry is beginning to move beyond simple investing in digital assets. According to the 21Shares head, the next phase could focus more on how blockchain technology itself is used across different financial and technological applications.
Ndinga noted that blockchain networks have already gone through several market cycles, allowing the technology to prove its resilience. Over time, these systems have been tested by both growth periods and market downturns. This helps developers improve security and efficiency.
He compared the evolution of blockchain to the early days of the internet. Just as the internet eventually enabled entirely new business models, Ndinga believes blockchain technology could unlock new financial services and digital innovation in the years ahead.
