With spot bitcoin ETFs having attracted over 192,000 BTC since their approval on January 11, Bitcoin is once more the talk of the crypto world. While the expected interest from institutional investors has had a predictable effect on the asset’s price, it’s also led to an uptick in the fortunes of native Bitcoin-based applications.

Bitcoin’s Layer-2 ecosystem has long played second fiddle to Ethereum’s. In fact, as Ethereum’s L2 kingdom was growing in strength, there was no equivalent on Bitcoin to match its success. However, with the recent surge in interest and investments in Bitcoin, we are witnessing a newfound momentum in the development of Bitcoin-based applications.

The rise of spot bitcoin ETFs has not only brought more attention to Bitcoin but has also opened the doors for innovative projects and applications to flourish within the Bitcoin ecosystem. This comes as a welcome change for Bitcoin enthusiasts who have long been waiting for the platform to catch up to Ethereum in terms of decentralized applications and smart contract functionality.

While Ethereum still holds the crown when it comes to DeFi and NFTs, the resurgence of interest in Bitcoin could potentially shift the balance of power in the crypto world. As more projects and developers shift their focus to building on Bitcoin’s Layer-2 solutions, we could see a new wave of innovation and growth within the Bitcoin ecosystem.

In conclusion, the rise of spot bitcoin ETFs has not only boosted Bitcoin’s price but has also sparked a renewed interest in developing native Bitcoin-based applications. This shift in focus could potentially lead to a more competitive and diverse crypto landscape, offering more choices and opportunities for both developers and users in the future.

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How This Will Affect Me?

As an individual investor, the surge in interest in spot bitcoin ETFs could potentially lead to increased liquidity and trading volume in the Bitcoin market. This could result in a more stable and mature market for Bitcoin, offering more opportunities for trading and investment.

How This Will Affect the World?

The rise of spot bitcoin ETFs could have a ripple effect on the global economy, as more institutional investors and mainstream businesses start taking Bitcoin more seriously. This could lead to greater adoption of Bitcoin as a legitimate asset class and payment method, potentially changing the way we transact and store value in the future.