The recent surge in spot bitcoin exchange-traded funds (ETFs) has been hailed as a success, with over $4.6 billion in volume on the first day of trading in the US. However, this liquidity boost does not address the underlying issues in the crypto user experience, nor does it offer investors empowerment through self-custody. The same is likely to be true for ethereum ETFs. Instead of relying on regulatory approval of financial products to bring traditional investors onboard, the industry needs to reimagine digital asset management to prioritize user empowerment and financial freedom.

The appeal of ETFs lies in their ability to provide exposure to the crypto market without the hassle of digital asset custody. However, this approach goes against the fundamental principles of the crypto industry, which seeks to transform existing financial infrastructure and empower individuals. The approval of ethereum ETFs may generate further interest in the crypto space, but the real opportunity lies in guiding new investors toward full ownership of their assets. The ETF wrapper is just one means of entry into crypto, but removing it reveals the true treat – true ownership.

Self-custody is essential, but how can we convince the next billion users to value freedom over convenience? Seed phrases and hardware wallets are not enough; the industry needs usable features to appeal to traditional investors and everyday users. Smart accounts, as advocated by Vitalik and other Ethereum leaders, offer a solution by abstracting away complexities and enabling features like crypto recovery, self-custodial debit cards, and email login. Improvements in scaling tools like zero-knowledge rollups have also increased the capacity and throughput of DeFi applications, paving the way for mainstream adoption.

The crypto industry needs to build on this momentum, capitalizing on the mindshare introduced by regulatory milestones like ETF approval. Simplifying crypto user experience should be championed above simple ETF wrappers and commodity baskets. Bolstered with new liquidity, the industry must revamp user experience across the board, progressing the movement for digital ownership, which will outlast any market trends.

In conclusion, ethereum ETFs, like their bitcoin counterparts, are a misguided solution to the real issues in the crypto user experience. Instead of relying on old-world instruments, the industry must reimagine digital asset management to prioritize user empowerment and financial freedom. By building on the momentum generated by ETF approval and focusing on self-custody, smart accounts, and scalability, the crypto industry can create a more inclusive and empowering experience for all users.