TradFi shows interest in Crypto is no longer a fad: CFTC Commissioner

Cryptocurrency investing is quickly entering the mainstream financial consciousness, according to pro-crypto commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger.

In an exclusive appearance on CoinDeskTV, Mersinger explained that crypto trading is not a fad.

According to her, several government regulators were looking at cryptocurrencies as a hot topic that would disrupt over time. However, the fledgling industry has shown its potential and is now attracting traditional financing.

Mersinger says this slow interaction between legacy financial institutions and the blockchain-driven economy proves these digital assets are here to stay, and even more mainstream investors want exposure to them.

The leading crypto asset, Bitcoin, rekindled the crypto market with its meteoric rally following the report of the Bitcoin Exchange Traded Fund (ETF).

Over the past 24 hours, Bitcoin has rallied more than 12%, rising above $35,000, and further bullish momentum is expected.

Bitcoin's strong rally was orchestrated by the appearance of BlackRock's proposed spot bitcoin ETF, the iShares Bitcoin Trust, on a list created by the Depository Trust and Clearing Corporation (DTCC).

DTCC is responsible for post-trade licensing, settlement, custody and information services. This rapid turn of events has led many ETF analysts to state that the position potential of Bitcoin ETFs is higher than before.

One such analyst is Eric Balchunas, senior ETF expert at Bloomberg, who says the addition of X (formerly Twitter) BlackRock to the DTCC list is a clear sign that the asset management behemoth is leading the race for regulatory approval in the coming months.

Commenting on the potential for a Bitcoin ETF to propel the market, Mersinger noted that Bitcoin-based ETFs are currently being offered.

“I think there is a lot of interest in these products. And, you know, the market is ready for these products to be available,” she added.

Bitcoin Spot ETF Demand Could Trigger BTC Price Rally

Mersinger isn't the only one who recognizes the growing relationship between the crypto space and the cultural landscape.

On CNBC's StreetSigns, Ernst & Young (EY) executive Paul Brodie highlighted institutional interest in crypto.

According to Brody, there is currently interest in the crypto asset as the US Securities and Exchange Commission (SEC) refuses to approve one.

The EY executive noted that the “Big Four” asset management firms, such as BlackRock and VanEyck, currently have $200 trillion in assets under management (AUM).

These asset managers are patiently waiting for the SEC to give a positive opinion on offering their services.

While providing context for why bitcoin will be the biggest beneficiary of regulatory approval, Brody said many investors view the first decentralized currency as an asset, not a means of payment.

This is very different from Ethereum's ETH token, which is intended as a computing device to enable permissionless value transfers.