Bitcoin ETFs Could See $35B Inflows by Year-End – An Interview with Bitget COO Vugar Usi Zade

This text appears to be an interview transcript with Usi Zade, the CEO of Bitget, discussing various topics related to cryptocurrencies and Bitget’s services. He talks about the Non-Doc Verification feature for user verification, the impact of Spot BTC ETFs on Bitcoin prices and inflows, the performance of Bitget’s native token BGB, Bitcoin’s long-term bullish trend, and its increasing adoption rate in traditional financial markets.

In the most recent episode of the GoCrypto interview collection, Mike Ermolaev converses with Vugar Usi Zade, the COO of Bitget, a prominent international cryptocurrency trading platform. Renowned for his incisive interviews with influential personalities in the crypto community and beyond, Mike investigates Vugar’s wealth of experience and its role in Bitget’s expansion and advancement. This enlightening series, sponsored by GoMining, takes us on a captivating journey through the ever-evolving landscape of cryptocurrencies and blockchain technology.

With a rich experience working for multinational corporations such as SONY, Facebook, Danone, and Carlsberg, Vugar brings a distinctive viewpoint to this interview. Throughout the conversation, he explores various topics including Bitget’s market entry strategies, advanced AI security features, Bitcoin halving and ETF implications, as well as his insights on Bitcoin’s future trends and potential widespread adoption.

Leveraging Diverse Industry Experience at Bitget

Vugar Usi Zade described how his diverse background in multiple industries has shaped his position at Bitget in a unique way. He entered the cryptocurrency sector following the sale of a prosperous Web2 business and subsequently joined a venture capital firm to safeguard his gains and expand his investments.

Vugar’s extensive experience and skills enabled him to maneuver through Bitget’s complexities, yield optimal results, and manage multifaceted teams proficiently in my tenure as their leader. Since taking the helm at Bitget, I have been a key catalyst in expanding the business in all major markets, most notably Europe, LATAM, CIS, and MENA, demonstrating my profound understanding of global markets and business acumen.

Usi Zade highlighted how working for multinational organizations honed his ability to effectively oversee intricate, cross-cultural operations that surmount geographical and temporal constraints, ultimately leading to expansion and creative advancements.

Through my tenure with international conglomerates and esteemed Fortune 500 corporations, I’ve developed a strong discipline and methodical mindset. Crucially, this background has equipped me for guiding Bitget as it ascends to prominent global leadership. It is essential to recognize that companies evolve distinctly throughout their growth trajectories; for instance, a startup contrasts significantly from a mid-sized organization. Currently, Bitget stands as a global enterprise with a team of 1,500 members hailing from 65 diverse nations. Our operations span continuously across all time zones to cater to our expansive customer base of 25 million individuals worldwide.

Global Expansion Focus

The COO of Bitget provided information about the company’s expansion plans, with a emphasis on expanding into emerging markets like Latin America, Southeast Asia, and Africa. Vugar revealed that Bitget is allocating additional resources towards these areas to foster development.

As cryptocurrencies gain more recognition, we see significant prospects and expansion possibilities in up-and-coming regions like Latin America, Southeast Asia, and Africa. Consequently, we’re putting greater resources and attention into these flourishing economies.

He also highlighted Bitget’s proactive approach to compliance, while expanding globally:

As a crypto investor at Bitget, I understand the significance of adhering to regulations in this ever-changing industry. With the global regulatory landscape for digital assets continuously evolving, I’ve been actively engaging in open dialogues and collaborative discussions with relevant law enforcement agencies to ensure we remain compliant and up-to-date.

Regulatory Compliance Efforts

As an analyst, I’ve observed that Bitget has made significant strides in obtaining Anti-Money Laundering (AML) licenses within the past two years, specifically in Lithuania and Poland. Moreover, Vugar Usi Zade, a representative of the company, has disclosed that additional licensing projects are anticipated to be finalized this year.

For the past two years, we’ve secured two additional Anti-Money Laundering registrations in Lithuania and Poland. Presently, we have several more licensing initiatives in progress, and we anticipate announcing further good news this year.

Through collaboration between different departments, Bitget is persistently enhancing its infrastructure and procedures to meet GDPR requirements, as explained by Usi Zade.

In October of last year, we introduced compulsory Know Your Customer (KYC) protocols. This means that all customers are required to undergo KYC verification in order to execute transactions or utilize other platform functionalities. Our system employs tools such as Chainalysis for screening all on-chain activities.

As an analyst, I can share that Bitget’s compliance team has been proactively growing and engaging with law enforcement agencies regarding their inquiries since the previous year. To boost transparency, they have established a public page where they outline their compliance initiatives in detail. This open communication approach keeps the public informed about their commitment to regulatory compliance.

He emphasized that our actions go beyond just taking internal steps; we work hand in hand with international institutions to tackle financial crimes.

Short-Term Pain, Long-Term Gain from Stricter Regulations

As a cryptocurrency industry analyst, I anticipate that regulatory frameworks will continue to evolve and grow more sophisticated in the future. However, attaining uniformity in regulations across various regions remains an elusive goal.

“Companies dealing with cryptocurrencies must adjust their approaches based on various regions, provide distinct offerings and cater to unique market needs, all while keeping up with regional shifts and modifications,” he emphasized.

Usi Zade pointed out that the ongoing legal debates regarding the classification of different cryptocurrencies as “securities” are likely to continue: “Should an Ethereum spot ETF successfully launch and thrive, there might be some optimism that the SEC may reconsider its position, potentially paving the way for more mainstream cryptocurrency spot ETFs in the future.”

“The passing of new laws and stricter rules may cause temporary hardships for the crypto industry. However, over the long term, these measures will bring about a more uniform market and stronger compliance systems. This will make it easier for new users to enter the cryptocurrency world, ultimately reducing major industry incidents and fostering sustainable growth,” he explained.
“Bitget is committed to regulatory compliance, focusing on areas like user identification verification (KYC), preventing money laundering, and keeping up-to-date with evolving regional laws. By adhering to these regulations, Bitget aspires to ensure a secure platform and dependable services for its users,” he stressed.

Educational Initiatives for Crypto Market Onboarding and Inclusion

Centralized trading platforms significantly contribute to bringing new users into the crypto market and instructing them about its intricacies. Bitget, in particular, has outlined the measures it implements to facilitate an effortless and instructive experience for first-time users.

He shared that our organization puts significant energy, hours, and funds towards embracing cryptocurrencies. To begin with, we’re launching several educational programs for the public to provide comprehensive information about cryptocurrencies and blockchain technology. Our Blockchain4Youth project has already reached thousands of students globally, offering them free lessons on cryptocurrencies.

Usi Zade brought up Bitget Academy as well, which provides extensive knowledge on cryptocurrencies, blockchain tech, and emerging solutions for users. Moreover, he emphasized the importance of the #Blockchain4Her initiative, designed to foster a welcoming blockchain environment for women by means of education and inclusion.

As a dedicated researcher in the cryptocurrency sector, I take great pride in acknowledging Bitget as one of the exchanges that sets a high standard for equality and inclusion within our industry.

I, as a seasoned crypto investor, can attest to the fact that Usi Zade made an important point during his recent statement. He emphasized that the exchange’s commitment to educational initiatives is crucial for creating an inclusive environment within the industry. This applies to individuals of all genders and age groups who may be newcomers to this space. By investing in education, we can collectively help bridge the knowledge gap and encourage more diverse participation.

AI-Powered KYC Verification

As a crypto investor, I’m always on the lookout for platforms that prioritize security and compliance. Bitget’s latest collaboration with Sumsub is an exciting development in this regard. Together, they’re implementing AI-driven deepfake detection technology for KYC (Know Your Customer) verification processes. This means more secure and reliable identity checks, giving us peace of mind as investors.

“I’m here to share that Sumsub’s newest AI-driven KYC (Know Your Customer) verification system significantly enhances Bitget’s security measures. It ensures thorough user authentication and fraud deterrence. Plus, it verifies users with official identity documents and establishes the authenticity of individuals.”

I. as an analyst:

“If regular identification documents aren’t available for some users, they can still get verified through the Non-Doc Verification feature. This process utilizes alternative data points and methods while adhering to Bitget’s safety standards. User information is cross-referenced against various databases such as sanction lists and watchlists to prevent involvement in unlawful activities.”
The database validation procedure will instantly signal an alert if a user’s data coincides with any records in these databases, enabling prompt response.

The Impact of Spot BTC ETFs and Future Inflow Projections

As a researcher studying the financial markets, I’ve observed an intriguing trend: the recently introduced Spot BTC Exchange-Traded Funds (ETFs) have experienced significant investor interest. These funds provide indirect, managed exposure to Bitcoin, making them an attractive option for those seeking to diversify their portfolios without directly handling the cryptocurrency. This success has served as a catalyst, inspiring other developers of altcoins to apply for similar products.

As an analyst, I’ve noticed that Bitcoin has experienced substantial price surges, reaching new all-time highs due to considerable inflows into Bitcoin Exchange-Traded Funds (ETFs). Specifically, BTC ETFs have averaged approximately $2.98 billion in monthly net inflows. This figure skyrocketed to a staggering $11.946 billion following the approval of Bitcoin spot ETFs on January 10, 2021. Based on this rate of growth, Bitcoin ETF products are projected to attract approximately $35.78 billion in total inflows by the end of 2024.

In recent months, there’s been a notable surge in Bitget’s trading activity, with a marked uptick in the number of spot transactions for Bitcoin and Ethereum specifically.

“However,” he cautioned, “the true extent of the impact will depend on the ETF adoption rate.”

The Performance and Benefits of Bitget’s BGB Token

During the interview, there was a discussion about the remarkable achievement of BGB, the native token of Bitget exchange, which hit its peak price (all-time high or ATH) of $1.48 on June 1, 2024. Vugar referred to BGB as the “golden shovel” symbolizing the bull market’s prosperity. He emphasized that BGB’s triumph was largely due to the robust demand for the token and the added advantages it offers through Bitget’s Launchpad, Launchpool, and PoolX.

He pointed out that since the introduction of Bitget Launchpad, initiatives such as PandaFarm (BBO) and T2T2 have yielded impressive returns of more than 25 times their initial investment for common investors, resulting in significant financial gains.

As a crypto investor, I’ve noticed some promising returns from projects launched on Bitget’s Launchpool within the past six months. The maximum ROI reached an impressive 6.59%, with an eye-catching annualized return of 329% leading the pack. On average, these projects delivered an annualized return of 146%.

As an analyst, I’d describe Bitget PoolX as follows: I discovered that Bitget PoolX shares similarities with a lighter version of Launchpools. One key advantage is the relatively low entry barriers it presents. Moreover, the returns are swiftly realized, making it an attractive option for BGB token holders.

Bitcoin’s Long-Term Bullish Trend and Rising Institutional Adoption

To conclude, Usi Zade offered his perspectives on Bitcoin’s potential price developments in the long run. He suggested that the acceptance of a Bitcoin Exchange-Traded Fund (ETF) would make investing easier for institutions and individual investors alike, thereby causing a substantial increase in investments.

With a limited supply of only 21 million Bitcoins and the popular perception of it being digital gold, experts predict that Bitcoin’s value will continue to rise over the long term as more investments pour in and the market becomes more established.
Although the approval of Bitcoin ETFs has broadened market involvement, it’s essential for investors to keep in mind that Bitcoin is still subject to volatility and risks. These risks stem from regulatory policies, macroeconomic factors, and the potential impact of regulatory changes, market sentiment, and other external influences.

As a researcher studying the cryptocurrency market, I’d like to highlight Usi Zade’s perspective on Bitcoin’s adoption rate. While Bitcoin is predominantly viewed as a store of value, Zade argues that its recognition within mainstream capital markets will lead to a steady increase in adoption. He further explains that this growth will be driven not only by Bitcoin’s role as a store of value but also by its utility in payments and transactions. This trend is particularly noticeable in countries experiencing high inflation or economic instability, where the need for alternative financial systems becomes more pressing.

“ETF approval simplifies Bitcoin investment for regular people, allowing them to purchase and own it without dealing with complexities like crypto wallets and private keys. Over time, this ease of access is expected to boost Bitcoin’s popularity among the wider population as an investment choice.”

With more and more institutional and individual investors entering the cryptocurrency market, Bitcoin’s status as a digital equivalent to gold is expected to become even stronger, according to Usi Zade.

“Over time, as more institutional and individual investors join the Bitcoin market, its role as a digital equivalent to gold will become even more firmly established,” I predict. “Bitcoin’s unique characteristics make it an ideal store of value, particularly for those seeking to diversify their investment portfolios with a defensive asset.”

As a crypto investor, I firmly believe that the approval of a Bitcoin spot ETF would significantly boost Bitcoin’s presence in traditional financial markets. This would mean that Bitcoin could be integrated into various financial products like insurance, broadening its reach and making it an essential component within the broader financial landscape.

In previous times, Usi Zade pointed out, the core of decentralized finance (DeFi) protocols mainly revolved around Ethereum assets. Yet, during this current bull market dominated by Bitcoin, it is anticipated that Bitcoin and native Bitcoin network assets will increasingly be utilized within the DeFi sector.

As a researcher studying the cryptocurrency market, I’ve observed that the approval of a Bitcoin spot ETF is a significant milestone for crypto assets. This recognition by mainstream capital markets will undoubtedly have positive effects on Bitcoin’s price and adoption rate in the long term. The influx of institutional and individual investors will strengthen Bitcoin’s position as “digital gold,” potentially merging it with traditional financial markets. Over the next few years, I anticipate that Bitcoin will grow increasingly important within our financial system, as its ecosystem continues to expand and mature.

2024-06-14 19:04