The recent approval of the first Bitcoin futures-based Exchange-Traded Fund (ETF) in the US sparked a frenzy in the cryptocurrency world. But whispers in the industry suggest this might just be the first step. Many believe Spot Bitcoin ETFs, which would directly track the price of Bitcoin, could be the real game-changer, paving the way for broader institutional adoption and integrating Bitcoin seamlessly into traditional finance (TradFi).

Shere, the head of payments at Solana Foundation, claimed that ETFs are vital for bringing the digital asset area to a wider audience. This applies to both institutional investors and the broader investing public. Shere, on the other hand, believes that there is room for new use cases in traditional finance. Shere elaborated:

“The real potential lies in enhancing the efficiency of outdated financial systems and exploring previously unimaginable possibilities, such as the creation of tokenized asset markets for a wide range of assets.”

Shere thinks it may take some time for things to work out, but more global regulatory clarity, in his opinion, will eventually encourage more traditional institutions to engage with blockchain technology.

Apart from these, the executive stated that growing company participation in blockchain will result in an increase in the number of users exposed to the technology. This will encourage other developers and founders to build on blockchain, prolonging the growth cycle.

On Jan. 24, the Solana Foundation revealed a feature dubbed “token extensions,” which intends to let developers, corporations, and financial institutions move their operations onto the blockchain.

According to Shere, the newly released feature was designed to answer the needs of enterprise-grade firms. The CEO also stated that it natively includes compliance solutions to help developers negotiate an ever-changing regulatory environment.

As a result of token extensions’ inherent compliance, Shere stated, “Many of the factors that would have motivated a regulated institution to use a private chain have now been mitigated.”

The executive explained that the function enables asset issuers to prevent sanctioned wallets from interacting with their tokens and to cooperate with regulators when assets are frozen and seized. Shere further stated that the capability may allow asset issuers to reveal the secrecy of suspicious transactions.