Note that this is not the only way cryptocurrencies are being popularised at the moment. As we learned the day before, Bitcoin will also become part of a private U.S. 401(k) retirement system, and this will be thanks to the efforts of Fidelity Investments.

In practice, that means that many U.S. citizens will be able to direct a portion of their contributions to their pension to invest in various assets, including Bitcoin. And since this amount is not subject to income tax, the initiative could really appeal to the recipients of the funds.

How cryptocurrencies are becoming more popular


The first Bitcoin ETF from ProShares in the US launched in October 2021. The event was historic - at least because it had never happened before.

An ETF itself stands for "exchange-traded fund," and it allows investors to invest in a certain type of asset without buying it outright. On top of that, it is all done through exchanges, which is crucial for conservative owners of capital who don't want to get involved with crypto platforms and don't want to be responsible for the safety of the coins themselves. We have compiled all the most common questions about ETFs in a separate article - along with the answers, of course.

Cryptocurrency regulators fighting the launch of ETFs

IBLC consists of securities from 41 companies, the largest of which is US cryptocurrency exchange Coinbase. Its share of the fund’s capitalisation reaches 11.45 per cent. Marathon Digital Holdings, a major mining company, is second with 11.19 percent of the fund, while Riot Blockchain Inc. is third with 10.41 percent of the fund. Another 9.15 per cent of the ETF is in dollar reserves, so the fund could acquire shares in a few more cryptocurrencies in the future.

According to Cointelegraph’s sources, simultaneously with the release of the new ETF, BlackRock also published a report outlining the three most promising and trending areas of the crypto market.

We believe that the broader opportunity – the use of blockchain technology for payments, contracts and consumption in general – has yet to be appreciated.


All of these cryptocurrency applications are already in use, but only within the blockchain community. Consequently, digital assets are still a long way from being massively popular.

However, industry developments are also leading to new ways of using crypto and blockchain. NFT tokens, for example, have become a major trend in the industry in the past year. And while for some they are just "overpriced JPGs that can be saved with a few mouse clicks," others see non-interchangeable tokens as the next generation of ownership confirmation tools, because it is virtually impossible to fake what happens in large blockchains. Further blockchain use cases are also set to expand.

BlackRock

The paper also draws attention to the adoption of central bank digital currencies (CBDC). BlackRock analysts noted that 87 countries are currently in the process of exploring the technology.

Read also: Cryptocurrencies failed to attract users because of the Super Bowl ad campaign. What's the reason for the failure?

Cryptocurrencies are not only interested in investment companies. In Dubai, construction company DAMAC Properties has started accepting Bitcoin and Etherium as payment for its luxury apartments. DAMAC Properties’ management sees cryptocurrencies as a way to attract new customers after a financially disappointing period, Cointelegraph reported. DAMAC had net revenue of $816 million in 2021 with a loss of $144.6 million due to the COVID-19 pandemic.

According to the announcement, along with accepting payments in BTC and ETH, the company will also facilitate the conversion of conventional currencies in transactions when needed. Company management spokesperson Ali Sajwani said that DAMAC is focusing on innovation. Here’s a rejoinder from the project spokesperson.

It is very important for global companies like ours to stay on top of evolution. Offering yet another way to conduct transactions is exciting and we are happy to recognise the value of this technology to our clients.

DAMAC Properties founder Hussain Sajwani

DAMAC also highlighted that Dubai is “becoming a crypto hub” thanks to cryptocurrency-friendly regulations and licences for virtual assets. In addition, leading exchanges like Bybit, Binance and FTX Europe had announced their presence and interest in the city the day before. Kraken also received a licence to operate in the country earlier this week.


We believe that the involvement of cryptocurrency giants like BlackRock will make more and more investors take a closer look at digital assets. And while many are still dubious about the prospects of cryptocurrencies and sometimes even consider them a scam, it won't stay that way for long. At the very least, the involvement of legendary names in the sphere will make it clear that coins are at least not scams.

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