Strive CEO Matt Cole said this week that digital credit is already more significant than exchange-traded funds (ETFs) for Bitcoin. The statement, made during a media briefing on June 2, 2026, challenges the prevailing narrative that Bitcoin ETFs are the primary gateway for institutional capital. According to Cole, the rise of digital credit could fundamentally reshape how investors approach Bitcoin, offering new income opportunities while exposing them to the asset's notorious volatility.
Why digital credit matters more than ETFs
Cole argued that digital credit — essentially lending and borrowing Bitcoin or its equivalents on-chain — represents a larger and more dynamic market than spot Bitcoin ETFs. While ETFs provide passive exposure, digital credit allows active strategies: investors can earn yield by lending their Bitcoin or use it as collateral for loans. This isn't just a niche product; major platforms now facilitate billions in digital credit transactions monthly, outpacing the flows into ETF products.
Income potential meets volatility risk
The appeal is clear: digital credit offers a way to generate returns from Bitcoin holdings beyond price appreciation. Lending yields can be attractive, especially in a low-interest-rate environment. But Cole didn't sugarcoat the downside. Bitcoin's price swings can trigger liquidations, wipe out collateral, or leave lenders exposed when borrowers default. The same volatility that makes digital credit profitable also makes it dangerous. It's a double-edged sword that investors need to understand before jumping in.
How Bitcoin investment strategies are shifting
If Cole's assessment is right, the industry is moving past the "buy and hold" phase. Digital credit encourages more active portfolio management — borrowing against Bitcoin to fund other investments, or lending it out to earn yield. That could bring more liquidity to the market, but also more leverage. Regulators have started to take notice: several jurisdictions are examining whether digital credit platforms need tighter oversight, especially around disclosure and collateral management.
What comes next
For now, Strive is betting that digital credit will continue to grow faster than ETF products. Cole said the firm is developing new products aimed at making lending and borrowing easier for retail investors, though he didn't give a timeline. The challenge will be balancing innovation with risk. If digital credit becomes the dominant way to invest in Bitcoin, the industry will need clearer rules on who bears the cost when the market turns. That debate is just getting started.
