Crypto NewsBitcoin"Bitcoin Spot ETFs Were a Mistake," Says Famous CEO, Explains Why

“Bitcoin Spot ETFs Were a Mistake,” Says Famous CEO, Explains Why

Bianco Research President Jim Bianco said in his statement that he sees Bitcoin Spot ETFs as a threat to BTC.

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Jim Bianco, President and Founder of Bianco Research, expressed concerns about the centralization of Bitcoin ownership through ETFs in a recent interview. His comments, initially shared in a tweet thread, sparked a debate within the cryptocurrency community.

Bianco argues that the essence of cryptocurrencies like Bitcoin is their decentralized nature, where no single entity owns, controls or regulates them. However, he believes that the emergence of Bitcoin ETFs has led to the centralization of Bitcoin ownership.

While these ETFs can represent thousands of individual investors, Bianco points out that when considered on-chain, Bitcoin only introduces a few new shareholders, led by large companies like BlackRock.

This centralization poses a potential regulatory problem, according to Bianco. The large group of BTC holders will have to comply with regulators such as the US Securities and Exchange Commission (SEC) and its chairman Gary Gensler. The SEC has already begun setting rules on allowed wallets and in-kind transfers, which may force the crypto community to comply to maintain inflows.

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Bianco's concern is that this centralization of ownership conflicts with the mission of cryptocurrencies, which is to create an alternative financial system. He fears that the industry's interest in Bitcoin ETFs could hinder the development of this alternative system. Instead of investing in coding or venture capital to build the system, people can simply purchase a Bitcoin ETF and watch their investment grow.

While Bianco acknowledges that the price of these coins will likely increase as a result of this influx, he is concerned that this will not lead to lasting value. He argues that the price should rise because something valuable is being built, not because everyone is piling into a handful of ETFs.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

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