In a recent interview with CNBC, WisdomTree CEO Jonathan Steinberg shared his positive outlook on the future of Bitcoin and cryptocurrencies, predicting their widespread adoption within the next few years. Steinberg pointed to regulatory clarity, the emergence of publicly traded crypto funds, and the tokenization of real-world assets (RWAs) as key drivers of this trend.
Steinberg highlighted the impact of former President Donald J. Trump’s speech at the Bitcoin 2024 conference on July 27, where Trump promised regulatory clarity for crypto and digital assets. Steinberg emphasized that this promise would have a positive effect on the industry as a whole, not just on crypto assets. He also noted that bitcoin has been the best-performing asset class over the past 15 years, and its performance combined with growing regulatory acceptance will contribute to its mainstream adoption.
Drawing parallels to technological advancements, Steinberg described bitcoin as the natural evolution of money. He likened the shift to digital assets to the transition from landlines to smartphones, suggesting that digital assets will eventually become the dominant form of currency. Steinberg expressed his belief that bitcoin is going mainstream and will continue to do so in the years to come, despite lacking significant institutional buying and employees.
Steinberg also touched on the expanding narrative around crypto, noting that it now includes a wider range of tokenized real-world assets beyond core cryptocurrencies like Bitcoin and Ethereum. Traditional financial institutions are beginning to enter the RWA market, with examples like BlackRock’s BUIDL and Franklin Templeton’s FOBXX. BlackRock’s BUIDL, which launched less than four months ago, currently holds over $500 million worth of tokenized Treasurys, while Goldman Sachs is set to launch three new tokenization products for institutional clients later this year.
According to a report by McKinsey & Company, the market for RWAs is projected to reach $2 trillion by 2030. However, the firm also highlighted a “cold start” problem due to limited liquidity and transaction volume. Despite this challenge, the tokenization of real-world assets is expected to continue growing, with more traditional financial institutions getting involved. The convergence of the broader tokenization of all real-world assets with the crypto asset class showcases the potential for significant growth and development in this space.
Overall, Steinberg’s optimistic outlook on the future of Bitcoin and cryptocurrencies is driven by factors like regulatory clarity, the tokenization of real-world assets, and the growing acceptance of digital assets by traditional financial institutions. He sees bitcoin as the natural evolution of money and believes it will become the dominant form of currency over time. As the industry continues to evolve and expand, there is potential for significant growth and adoption in the years to come.
