TL;DR
Full Story
Most people are stoked on the Bitcoin ETFs, cause they’re pushing the price of the crypto market up.
(ICYMI: we just saw another all time high in BTC price over the weekend).
But others are ringing the alarm bell…
Here’s the basic gist of their argument:
By making it easy/legal for big players in the traditional financial (TradFi) world to invest in Bitcoin via Exchange Traded Funds (ETFs) — we’re inviting centralization risk into Bitcoin and any other crypto that has an ETF built around it.
The idea being:
Sure, Bitcoin is a $1.3T asset — but the management firms that are running these ETFs have tens of trillions of dollars to play with.
And the fear is, over time, with a small percentage of their total funds, these firms could own a significant portion of the Bitcoin supply — enough to easily manipulate the price, and concentrate a silly amount of wealth in one place.
Here’s our take (which we kinda stole from Satoshi):
Satoshi once celebrated lost Bitcoin, in that…
The more is lost → there less there is → the more scarce BTC becomes → the more valuable the BTC we all have in our personal wallets becomes.
While the concerns surrounding TradFi players hoarding BTC are absolutely valid — it does come with its upsides…
These asset managers tend to have a ‘buy and hold’ strategy, which means more Bitcoin is being taken off the market, for longer.
(Making it scarcer/more valuable).
