Amid the highly-anticipated approval of Bitcoin spot exchange-traded funds (ETFs), which has sparked excitement within the crypto industry, the International Monetary Fund (IMF) managing director, Kristalina Georgieva, has expressed critical views towards the nascent sector.

In a recent interview with Yahoo Finance, Georgieva emphasized the distinction between money and crypto assets when discussing cryptocurrencies. She noted that crypto should be regarded as an asset class rather than a form of currency, highlighting the alleged varying levels of security and risk associated with different cryptocurrencies, depending on whether assets back them. Georgieva likened crypto to a money management fund rather than a true form of money.

Interestingly, Georgieva’s comments came just hours before the US Securities and Exchange Commission (SEC) approved the launch of new spot Bitcoin-backed ETFs. This regulatory green light allows financial institutions like Cathie Wood’s Ark and BlackRock to introduce these ETFs. A total of 11 spot Bitcoin ETFs were approved, enabling average investors to gain exposure to the world’s largest cryptocurrency without the need to own it directly.

Georgieva’s cautious stance on the potential of cryptocurrencies to rival traditional currencies like the US dollar contrasts with industry experts’ anticipation of a surge in investments following the ETF approval. Analysts like Gautam Chhugani from Bernstein advise investors to view any minor selloffs as opportunities, emphasizing the asymmetric upside potential of Bitcoin. On the other hand, Coinbase Chief Financial Officer Alesia Haas sees the ETF approval as a catalyst that will attract trillions of dollars previously unable to access crypto assets.

The long-term impact of the ETFs on Bitcoin’s price and the broader industry is yet to be determined, as the cryptocurrency has experienced a retracement since the approval. With the ongoing developments, it will be intriguing to observe how the markets respond and whether the institutional acceptance of Bitcoin paves the way for its further adoption and integration within the global financial system.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.