Three Reasons Why a Bitcoin ETF Is a Bad Idea
TL;DR
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Right here’re three frequent arguments in opposition to a spot Bitcoin ETF:
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1. It places an entire bunch of Bitcoin within the care of a really small quantity of individuals, which supplies them management over it.
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2. Some Bitcoin maxis concern that the federal government will try to ban particular person possession of BTC, and pressure traders to purchase it solely by way of an ETF.
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3. Some people are pointing to the concept that an ETF approval has already been priced into Bitcoin.
Full Story
There’s plenty of pleasure surrounding a possible spot Bitcoin ETF (aka a means to purchase Bitcoin on the inventory market)…
However what’re the potential draw back dangers?
We discovered just a few frequent speaking factors from dissenting voices, and picked up them right here for you, so you may type a balanced opinion (if the sensation takes you).
Right here’re three frequent arguments in opposition to a spot Bitcoin ETF:
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It places an entire bunch of Bitcoin within the care of a really small quantity of individuals, which supplies them management over it.
Positive, a variety of individuals will purchase into these Bitcoin ETFs – however they’re going to personal the Bitcoin by proxy, which means it will likely be the fund that really takes custody of the Bitcoin.
Our two cents: protected third get together custody has to develop into an choice if Bitcoin goes to proliferate. Not everybody goes to really feel comfy holding hundreds of thousands/billions of {dollars} on a {hardware} pockets.
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Some Bitcoin maxis concern that the federal government will try to ban particular person possession of BTC, and pressure traders to purchase it solely by way of an ETF.
Our two cents: Appears like a stretch, however crazier issues have occurred.
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Some people are pointing to the concept that an ETF approval has already been priced into Bitcoin.
Which means that if/when an ETF will get accepted and goes reside, it will not transfer the worth all that a lot – which means we’re all getting excited over nothing.
Our two cents: within the brief time period, that is in all probability true. In the long run (12 months +), not a lot.
All issues thought-about, we’re nonetheless excited on the potential of a spot Bitcoin ETF.
