Cryptocurrency exchange-traded funds (ETFs) are expected to remain popular, even as more individuals become proficient in using wallets. ARK Invest CEO Cathie Wood suggests that many investors will prefer the simplicity of ETFs, opting for their easy, one-click accessibility. At a May 23 event in New York, she noted that wallets can seem overly complex for the average user.

Despite approximately 200 million active Bitcoin wallets worldwide, U.S. spot Bitcoin ETFs attracted nearly $2.70 billion in new investments between May 17 and May 23. Bitcoin reached a high of $111,985 on May 22, indicating a preference for ETFs over immediate wallet setups. ETFs reside within standard brokerage accounts, eliminating the need for additional apps or backup phrases.

Since their U.S. launch in January 2024, spot Bitcoin ETFs have garnered roughly $44.50 billion, according to Farside data. Spot Ether ETFs, initiated in July 2024, have attracted about $2.75 billion, highlighting significant interest in both Bitcoin and Ether. However, Ether ETFs have not gained traction as rapidly, partly because the U.S. Securities and Exchange Commission (SEC) disallowed staking within these funds, diminishing their appeal to yield-seeking investors. The BTC market cap currently stands at $2.14 trillion.

Wood believes that staking would enhance the attractiveness of Ether ETFs, as staking allows users to earn rewards by locking up coins. Without staking, these ETFs merely hold the token, failing to compete with direct staking in the protocol. On May 21, the SEC postponed a decision regarding the inclusion of staking in Bitwise’s Ether ETF, potentially deterring investors until regulatory changes occur.

Wood also highlighted an incident involving Solana that may have unsettled some older investors. The launch of a memecoin called Official Trump (TRUMP) on Solana by U.S. President Donald Trump on January 17 saw its value plunge by approximately 50% within days due to the absence of crypto-related actions during his initial days in office. This volatility likely caused advisors to reconsider the reliability of Solana. The Solana price has decreased in the last day.

Wood anticipates that crypto ETFs will continue to serve as an “insurance policy” for those concerned about traditional markets while also acting as a bridge. She expects that new investors will begin with Bitcoin or Ether in ETFs before transitioning to wallets to explore smart contracts and other tokens. ARK’s price forecasts are ambitious, with the firm raising its Bitcoin bull case to $2.50 million by the end of 2030. Wood is still developing her Solana target and plans to release it after further research.