Despite the rapid growth of self-custody crypto wallets, Cathie Wood, CEO of ARK Invest, believes that crypto exchange-traded funds (ETFs) will retain their appeal to investors. Speaking at a recent industry forum, Wood emphasized that wallet adoption and ETF demand are not mutually exclusive trends — in fact, they may complement each other.
Crypto Wallets Are on the Rise
Blockchain analytics firms report that non-custodial wallet usage has surged in 2024. Platforms like MetaMask, Coinbase Wallet, and Trust Wallet have seen millions of new users, especially among Gen Z and millennial investors who prefer direct ownership of digital assets.
“The growth of wallets represents deeper engagement with the crypto ecosystem,” said Wood.
“But not everyone wants or is ready to manage their private keys. That’s where ETFs shine.”
Why ETFs Still Have a Key Role
Crypto ETFs, especially Bitcoin and Ethereum ETFs, have gained massive popularity since the approval of spot Bitcoin ETFs in early 2024. Institutions and retail investors alike are drawn to the simplicity, regulation, and tax advantages that ETFs offer.
As of May 2025:
- Over $65 billion is currently managed across various U.S. crypto ETFs.
- ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) is among the top performers.
- ETFs offer exposure without technical complexity, ideal for pension funds, advisors, and conservative investors.
“ETFs will not lose their luster — they serve a different but essential audience,” Wood stated.
Wallets vs. ETFs: Complementary, Not Competitive
According to Wood, wallets cater to tech-savvy users, while ETFs cater to traditional investors and institutions. She predicts a future where both formats thrive in parallel:
- Wallets enable Web3, DeFi, and NFT usage.
- ETFs provide regulated exposure to digital assets through legacy financial systems.
“This is not a zero-sum game,” Wood emphasized. “Wider wallet adoption educates users about crypto’s potential, often leading them to diversify through ETFs as well.”
A Unified Growth Path for Crypto Access
As the crypto market matures, the expansion of both self-custody and regulated investment vehicles highlights a broader theme: mainstream adoption is accelerating.
ETFs will continue to grow — not despite wallet adoption, but because of it.
Cathie Wood’s insights affirm that crypto investing is no longer just for tech elites — it’s becoming part of everyone’s portfolio.