The price of Bitcoin rallied when users believed that CBOE–VanEck-SolidX would get an exchange-traded fund (ETF) approval from the Securities and Exchange Commission (SEC) earlier this month. As anticipation was high and investors were hopeful, there was no reason to believe that it wouldn’t bring hoards of cash to the market via institutional investors. For now, the SEC has delayed the gratification of ETF hopefuls. Though most of the Bitcoin world isn’t too thrilled about the delay, one voice goes against ETFs. It is the famed Bitcoin advocate Andreas M. Antonopoulos.
New Video Focuses on ETFs
In a new YouTube video, Antonopoulos explains why he is against an ETF product. First, he details how an ETF is created and cites an example Bitcoin ETF. He explains that it is a reserve of Bitcoin traded like a stock on the stock market. The price of this ETF is decided by the price of its underlying asset, i.e., Bitcoin. It can be bought by people using their brokerage accounts directly, and no extra wallets or accounts at crypto exchanges are needed. It could be a good way for traditional investors to invest in cryptocurrencies without having to hold any actual Bitcoin.
However, he goes on to say that the large market makers will get a chance to manipulate the prices of ETFs on a global scale because it would be a liquid global market. He adds:
“I think it’s a terrible idea. I still think it’s gonna happen. I just think it’s a terrible idea. I’m actually against ETFs. I think a Bitcoin ETF is going to be damaging to the ecosystem.”
Large Custodian Holders and Fork Issues
Antonopoulos said that the creation of a large custodian holder of Bitcoin would mean that there will be a lot of people invested in a Bitcoin-related instrument without actually owning the coins. The users will not get any “responsibilities and rights” related to the coins, like choosing the where to store them and using them to vote.
He also details how a fork could make the whole Bitcoin ETF ordeal more difficult for users. For instance, if a currency is forked, instead of the users deciding which coin they keep or sell, the fund managers will decide.
The whole idea of a Bitcoin ETF could be against decentralization. It will give fund managers a large voice in the market while disallowing users from participating in the development, governance or use of Bitcoin.
Bitcoin Expert & Advocate: Bitcoin ETFs Are a “Terrible Idea” And Will Be “Damaging to the Ecosystem” was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.