“Everything can be decentralized and nothing can be decentralized at the same time, depending on what’s your point of view.” | Image credit: CCN
Share
Key Takeaways
Crypto ETPs support mainstream adoption by simplifying access to digital assets while allowing traditional finance to participate.
Market maturity now depends more on institutional demand, regulated products, and product diversity than on volatility alone.
Yield in crypto ETPs mainly comes from staking, structured strategies, or limited DeFi exposure, with price risk remaining the main concern.
Tokenization and DeFi integration are likely to shape the next stage of ETP growth, although regulatory friction still slows scaling.
Crypto exchange-traded products (ETPs) have become a central entry point for institutional capital into digital assets.
These products allow investors to gain exposure to cryptocurrencies without managing wallets, private keys, or custody risks. As a result, they reduce operational barriers that previously limited participation to crypto-native users.
Institutional demand has grown alongside the expansion of regulated products, especially in the United States, Europe, and Canada.
The approval of Bitcoin exchange-traded funds (ETFs) marked a turning point, signaling that digital assets have moved closer to traditional financial markets.
At the same time, new products now include staking, structured strategies, and early forms of decentralized finance (DeFi) integration.
This shift has raised key questions. Some argue that ETPs may turn blockchain into a purely financial asset class, moving away from its original purpose as a decentralized system.
Others view these products as a necessary step toward mainstream adoption, where usability and accessibility matter as much as innovation.
In an interview with CCN, Matteo Greco, Senior Associate at Fineqia, explained how crypto ETPs fit into this transition. The discussion explored institutional adoption, market maturity, yield generation, decentralization debates, and the future role of tokenization.
His insights reflect a market that continues to evolve, where traditional finance and blockchain technology increasingly intersect.
Watch the full interview here:
Crypto ETPs Drive Mainstream Adoption of Digital Assets
Crypto markets started as a grassroots movement driven by individuals. Over time, institutional players entered the space, bringing new structures and expectations.
Greco described ETPs as part of a necessary transition.
“If we want any kind of market to go mainstream, obviously what you need to do is you have to think to the average user base.”
Traditional investors often avoid direct crypto exposure due to complexity. Managing wallets, handling private keys, or understanding blockchain mechanics creates friction. ETPs remove that barrier by offering familiar financial instruments.
Greco compared this to everyday technology use.
“When we drive a car, we just know that we have to turn on the engine and drive. We don’t know all the complexity behind.”
This shift does not replace native crypto use. Instead, both systems coexist. Crypto-native users continue to interact directly with blockchains, while institutional investors access the same assets through regulated structures.
As adoption expands, questions around scale and market depth naturally follow, especially when assessing whether crypto has moved beyond its early niche phase.
Has Crypto Market Demand Moved Beyond a Niche Phase
Bitcoin now ranks among the most capitalized assets globally, and demand for regulated products continues to grow.
Greco pointed to strong inflows into Bitcoin ETFs as evidence of sustained interest. Even during periods of weak price performance, inflows remain relatively stable.
“In perspective, the range of outflows has been really low and the inflows since inception are still quite close to the highest level.”
This pattern suggests that institutional investors treat crypto as a long-term allocation rather than a short-term trade.
Evaluating this shift leads directly to a broader question around how maturity should be measured in crypto markets.
What Defines Crypto Market Maturity in 2026
Volatility has often been used as a benchmark for market maturity. Greco challenged that view.
Recent price swings in commodities show that volatility exists even in established markets. Instead, maturity comes from structural factors.
“What gives out the maturity is really the institutional interest and probably the range of regulated products that are behind.”
As product offerings expand, attention shifts toward how returns are generated and whether these structures introduce new layers of complexity.
Where Crypto ETP Yield Comes From: Staking, DeFi and Strategies
Yield-generating crypto products attract growing attention, yet many investors remain unclear about how returns are produced.
Greco identified three main sources.
Staking rewards: The most common source comes from staking. Investors lock tokens to support blockchain operations and receive rewards in return.
Structured strategies: Some ETPs use financial strategies such as options or hedging.
DeFi integration: A smaller number of products deploy capital into decentralized finance protocols.
“You are providing basically security to the blockchain, helping in securing transactions and you get rewarded by the token emissions,” he said.
These yield mechanisms introduce different types of exposure, which makes it important to understand how risk is distributed across products.
Crypto ETP Risks: Price Volatility, DeFi Exposure and Regulation
Greco emphasized that the risk in crypto ETPs primarily stems from asset price movements.
“The real DeFi risks and the crypto risks are definitely reduced. They never can go to zero, but nothing can go to zero.”
Beyond risk, another ongoing debate focuses on whether institutional participation changes the nature of decentralization within blockchain ecosystems.
The relationship between DeFi and institutional products remains debated.
Greco offered a different perspective.
“Everything can be decentralized and nothing can be decentralized at the same time, depending on what’s your point of view.”
“Many times, decentralization is not that realistic, in my opinion. There’s a lot of actual centralization in the background.”
These tensions also influence how firms select blockchain ecosystems when building products.
Why Cardano Supports Crypto Yield ETPs and Tokenization Growth
Fineqia selected Cardano as a base for certain yield-focused products.
“We had the right knowledge with the team, through our partners. So it was an ecosystem where we felt comfortable.”
This decision connects to a wider trend where infrastructure choices impact both scalability and regulatory alignment.
Tokenization of real-world assets has gained traction as a major blockchain use case.
“The tokenization process itself happens on chain, yes, but it still needs to go off-chain for all the regulatory bits.”
As these barriers evolve, attention turns toward how the next phase of growth may look for crypto ETPs.
Future of Crypto ETPs: Global Expansion and DeFi Integration
Looking ahead, Greco outlined two key developments.
“It would definitely be nice to see a broader expansion in the other markets.”
“In five years, I would expect DeFi and tokenized assets in general to be more widely available through crypto ETP.”
Crypto ETPs now act as a bridge between traditional finance and blockchain-based assets. Institutional demand continues to grow as regulated access becomes easier and more standardized.
The market shows clear signs of maturity through product expansion, geographic reach, and sustained inflows.
Future growth will likely depend on integration. DeFi strategies, tokenized assets, and global regulation must align to support broader adoption.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Lorena Nessi is an award-winning journalist and media technology expert with 15 years of experience in digital culture and communication. Based in Oxfordshire, UK, she combines academic insight with hands-on media practice.
She holds a PhD in Communication, Sociology, and Digital Cultures, and an MA in Globalization, Identity, and Technology.
Lorena has taught at Fairleigh Dickinson University, Nottingham Trent University, and the University of Oxford. She is a former producer for the BBC in London, with additional experience creating television content in Mexico and Japan.
Her research focuses on digital cultures, social media, technology, capitalism, and the societal impact of blockchain innovation.
She has written extensively on digital media and emerging technologies, with her work featured in both academic and media platforms. Her Web3 expertise explores how blockchain technologies shape culture, economics, and decentralized systems.
Outside of work, Lorena enjoys reading science fiction, playing strategic board games, traveling, and chasing adventures that get her heart racing. A perfect day ends with a relaxing spa and a good family meal.
Easy 
