Nischal Shetty, co-founder of Shardeum, says the rise of spot Bitcoin exchange-traded funds (ETFs) has helped push Bitcoin deeper into the traditional financial system, giving institutions a regulated and familiar way to gain exposure.
He said the approvals have not only “validated” Bitcoin but also made it easier for major firms to participate without changing their existing custody setups. According to Shetty, this lowers internal friction and removes one of the biggest barriers to institutional adoption.
However, he stressed that ETFs are just one part of a much larger maturity process. Regulation, custody improvements, better liquidity and stronger institutional infrastructure also play roles.
Bitcoin recently hit new all-time highs, but the swings around those peaks have been smaller than in past cycles.
In an interview with Coinpedia, he said, “It’s a meaningful trend, but not a complete structural shift yet. Lower volatility around price peaks suggests institutional flows are starting to balance speculative cycles.”
The smoother price movements point to a growing share of institutional flows, which tend to be less emotional than retail traders. Steady ETF buying has created more predictable demand, softening sudden spikes and crashes.
But he warned that this may not last forever. “Volatility can return when macro conditions change or when ETF flows slow down,” he said. For now, Shetty sees this as the start of a more mature market cycle, not a permanent shift in Bitcoin’s behaviour.
Looking ahead, Shetty expects Bitcoin and Ethereum to experience longer, more sustained trends instead of the sharp week-to-week moves that dominated earlier years. This depends on ETF inflows staying positive and global monetary conditions not tightening too quickly.
He said Bitcoin’s path will be shaped mainly by central bank policy and how institutions integrate it into their portfolios. Ethereum, by contrast, will depend more on real usage—whether activities like tokenization, DeFi, payments and developer growth continue shifting on-chain.
Shetty added that volatility is unlikely to disappear completely, but broader participation can help soften extreme moves. “Long-term sustainable growth comes from real usage, not just speculative momentum,” he said. “The same applies to both Bitcoin and Ethereum.”
