Cryptocurrency is undergoing an identity crisis as the gap widens between its decentralized origins and today’s institution‑driven adoption, argues Meltem Demirors.
Meltem Demirors, founder and general partner of early-stage fund Crucible, argues that institutional access hasn’t made bitcoin more useful. Instead, it has triggered an identity crisis, absorbing crypto into the very financial system it was built to disrupt. Speaking during a recent interview on Fox Business, Demirors specifically identified spot bitcoin exchange-traded funds (ETFs) as a decision that supports her argument.
“My view is [that] crypto has an identity crisis. Shoving bitcoin into ETF did nothing to make bitcoin more useful. I spent 11 years of my life extremely excited about the opportunity to use bitcoin and crypto to change the financial system. Ultimately, the banks won,” Demirors said in the interview.
Built on cyberpunk ideals, bitcoin was envisioned as a decentralized and peer-to-peer electronic cash system that bypasses central banks and operates outside traditional financial structures. However, in the last few years, the focus has pivoted toward building infrastructure to support institutional ETFs and onboarding Wall Street capital. This is in addition to its use as an investment or speculative asset.
