Third, a simpler on-ramp for African investors to access the explosive growth of DeFi. All of which begs the question—how do we ensure equitable access to a groundbreaking new technology? Bahamarama This new technology could democratize finance, disintermediate the establishment, empower the people. Right?

Hope For The Next Generation?

Think about it. Increased access to the Ethereum ecosystem. Opportunity for significant wealth creation in a sector that is still very much in its infancy. Diversifying investment portfolios beyond traditional assets. Yet, all of this sounds amazing…really, really amazing…especially for a continent that has long been left out on the leapfrog development side of global financial opportunities. By the beginning of July 2025, the total AUM had already surpassed $12.1 billion. BlackRock’s ETHA was responsible for a jaw-dropping $5.6 billion of that, with record weekly inflows of more than $2 billion flooding into ETH ETFs!

Here’s where we all need to take off the rose-coloured glasses. Before we all blindly cheer what seems like a great idea, let’s consider some serious questions we should be asking ourselves about this “gateway.” Is this really about empowerment? Or is it simply a more insidious form of economic colonialism, dressed in the cool new words of blockchain and decentralization?

Let's be blunt. How much of a boon are these Ethereum ETFs going to be? Perhaps they are African entrepreneurs, building DeFi solutions continentally and innovatively within their jurisdictions, to enhance investments. Western financial institutions such as BlackRock, Grayscale and Bitwise, are they the key players in this game? They are collecting a lot of management fees while keeping the underlying assets.

Are We Ceding Control Again?

The colonial analogy is not mere rhetorical flourish. As we know, for centuries Africa was looted of its wealth, and robbed of its people, with the European colonial project leaving Africa impoverished and exploited. Are we substituting a physical resource with a digital one? By making this change, Western institutions gain the upper hand in determining where the capital flows within the Ethereum ecosystem while African investors are left as idle consumers at best.

It’s the difference between giving someone a fishing rod. They can only catch fish in a pond that you personally own and control, and you keep a percentage of everything they catch. Is that really empowerment?

  • Lack of Control: African investors are essentially buying a slice of a pie that's being baked and controlled by someone else. They have little to no say in how the underlying Ethereum is managed, staked (even with the potential for staking in ETFs by Q4 2025), or utilized.
  • Regulatory Risks: What happens if Western regulators decide to impose restrictions on Ethereum ETFs that disproportionately impact African investors? Could sanctions, political pressures, or simply differing regulatory frameworks prevent Africans from accessing their funds? Remember the mid-month sell-off in February 2025? It highlighted sensitivity to macroeconomic and geopolitical factors.
  • Profits Leave the Continent: The profits generated by these ETFs will likely flow back to Western institutions, further enriching them while doing little to stimulate local economies in Africa.

The real path to financial liberation lies not in passively participating in existing Western systems, but in building our own. First, we need to advocate for African-led DeFi and NFT efforts. These projects must cater to the peculiar needs and challenges that the continent is burdened with.

Building Our Own Table, Not Just Eating Scraps

I know what you're thinking: "That's a nice idea, but it's unrealistic. We need access to capital, and ETFs are the easiest way to get it." I hear you. At the same time, I think that we don’t give ourselves enough credit for what we can achieve. We have the talent, we have the creativity, and most importantly we have the drive to take ownership of our own financial future.

Now, I’m no Ethereum hater, and I’m not even saying Ethereum ETFs are necessarily a bad thing. We should be enthusiastic about them but still approach with a healthy dose of skepticism. It’s important that Congress have a clear understanding of the risks associated. We should be requiring much more transparency and accountability from ETF providers. Instead, we must fund and protect African-led efforts that are in the process of creating a genuinely decentralized and more inclusive financial system. We have to be more literate about the risks and opportunities of crypto investing.

  • African-owned crypto exchanges: Platforms that prioritize local currencies, languages, and regulatory frameworks.
  • DeFi platforms that address local challenges: Lending protocols that cater to small businesses, insurance products that protect farmers from climate change, and remittance solutions that reduce transaction costs for diaspora communities.
  • NFT marketplaces that showcase African art and culture: Platforms that empower African artists, musicians, and creators to monetize their work directly, without relying on Western intermediaries.

The stats are pretty compelling! From April through July 2025, the ETH price surged from $1,750 to well over $3,400, representing a stunning almost 95% gain. At the same time, ETF-driven demand has reduced the share of ETH held on centralized exchanges to a mere 16.2% of total supply as of late July 2025. Yet, it is not merely a question of numerical value, but rather who gets to decide that value and who is being enriched by it.

Let’s not get caught up in making the same mistakes all over again. Here’s to creating a future where Africa leads innovation! By working and learning from each other, we can make Africa the creator and leader of the DeFi revolution.

Let's build our own table, not just eat the scraps from someone else's.

Let's not fall into the trap of repeating the mistakes of the past. Let's build a future where Africa is not just a consumer of technology, but a creator and a leader in the DeFi revolution.

Let's build our own table, not just eat the scraps from someone else's.