Bitcoin ETFs Can Cross the ‘Chasm’ for BTC Adoption

Billionaire venture capitalist Chamath Palihapitiya spoke about Bitcoin in a recent interview. In the year He sees 2024 as the year in which the asset will be mainstream, published in exchange-traded funds (ETFs).

On January 7, Canadian and American investors of Sri Lankan origin said that the most important trend in 2024 will be the mainstream adoption of Bitcoin.

Bitcoin to ‘cross the chasm'

Commenting on the potential approval of Bitcoin ETFs, Palihapitiya said, “This is the most important year for Bitcoin ever.”

“This is a time when Bitcoin will cross the chasm to use that old term and see the mainstream adoption where our parents and grandparents understood what it was, bought it and bought it.”

If all this happens, Bitcoin will become part of traditional finance by the end of 2024, he said.

“Crossing the Rope” refers to the concept in the technology adoption life cycle. By Geoffrey A. Moore became popular in his book of the same name. It describes the gap between the early adopters of a new technology and the many practical users.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

Essentially, it addresses the difficulty of transitioning from early innovators and early adopters to the mainstream market. There is often a “wire” or gap between those two groups that is difficult to cross.

The “chasm” is a large chasm with more than 10% adoption, representing how adoption moves from “early adopters” to “majority,” according to YouTuber Luke Micic.

For technologies like bitcoin, it marks the crossing of the chasm from visionary cryptocurrency enthusiasts to mainstream commerce and consumer adoption. This is often seen as a key challenge to mass adoption.

Palihapitiya's recent comments are in stark contrast to April 2023's “Crypto is dead in America.”

ETF fever heating

The Chasm jump can only happen if the US Securities and Exchange Commission approves one or more Bitcoin ETFs this week.

Failure to do so could send the price of BTC back below $40,000. However, analysts and industry experts are convinced that this will not happen.

On January 8, ETF Store President Nate Geraci highlighted things to expect. He said there will be some pending fee disclosures, particularly from BlackRock and Grayscale. Fee competition will be crucial in this competition to increase financial security and customers.

He also predicted that Greyscale would transform or ‘boost' Bitcoin Trust at the same time. It currently has a significant advantage with $27 billion in assets under management.

There will be a huge marketing blitz, putting Bitcoin on screens and media everywhere in the United States.