Difference between web 1.0, 2.0 and 3.0 illustrated with a graph showing the institutional adoption of Bitcoin ETFs in 2024.
Bitcoin ETFs will drive institutional adoption in 2024 — Galaxy Digital’s Mike Novogratz

Difference between Web 1.0, 2.0 and 3.0

Galaxy Digital founder Mike Novogratz has informed investors that in 2024, institutional adoption of cryptocurrencies will be propelled by the anticipated approval of Bitcoin (BTC) spot exchange-traded funds (ETFs).

During Galaxy Digital’s third-quarter earnings callon Nov. 9, Novogratz pointed out the company’s conviction that authorizing several ETFs “is now not a matter of if but when.” The fund manager had filed its spot Bitcoin and Ether (ETH) ETF applications with the United States Securities and Exchange Commission in collaboration with Invesco in Q3 2023.

In November 2023, investors’ sentiment has become bullish, with prominent ETF research analysts forecasting that the SEC will have approved12 major Bitcoin spot ETF applications by January 2024.

“2024 literally is going to be a year of institutional adoption, primarily first through the Bitcoin ETF, which will be followed by an Ethereum ETF,” Novogratz said during the Q3 earnings call.

The difference between Web 1.0, 2.0 and 3.0 is that Web 1.0 was a static, read-only platform, while Web 2.0 enabled users to interact and collaborate with each other, and Web 3.0 is the next generation of the Web, which is being built on top of distributed ledger technology.

The Difference Between Web 1.0, 2.0 and 3.0

Novogratz stated that institutional investment could reach its peak in 2025 due to a rise in “tokenization and wallets”. He added that in order for the U.S. to remain a major player in the cryptocurrency space, it is essential that dollar-backed stablecoins continue to be used.

The Galaxy Digital CEO also said that the approval of a Bitcoin ETF could bring a lot of confidence and funding to the industry. “This ETF is giving us all breathing space, putting life in the system. That brings in capital that allows the rest of the stuff to flourish. But I think if you look at the crypto long-term plan, it’s on target,” he added.

The potential impact of an Ether spot ETF was also discussed. Novogratz said that its approval may not be as well-received as a Bitcoin ETF, since Ethereum’s validating model is based on a staking model and staking yields.

“Unless they can create an ETF that passes through the staking rewards, it will be a subpar product compared to just owning Ethereum with someone like us and having it staked,” Novogratz explained.

He added that the technical difference between web 1.0, web 2.0 and web 3.0 would be significant if investors were looking at yields between 4% and 7%, depending on the method of staking. Utility remains an important factor, with Novogratz stressing that different blockchains and their native tokens need to “serve a purpose” and have “stuff built on them” to sustain long-term value.

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