The arrival of financial behemoths in the cryptosphere, publishers of new products such as Bitcoin or Ethereum ETFs, would constitute a threat to the future of bitcoin. Former BitMex CEO Arthur Hayes already addressed the topic a few days ago. Today, another crypto industry heavyweight warned about a possible danger awaiting bitcoin in this context of massive deployment of spot Bitcoin ETFs. Zoom !
Bitcoin threatened by ETFs?
Many hope for rush of new investors in bitcoin once the Spot Bitcoin ETFs have been validated by the SEC. Nothing but speculation around these new financial instruments has propelled bitcoin to the heights: it crossed the $35,000 mark for the first time in several months on occasion.
“ We could see Bitcoin divided between ‘institutional BTC’ and ‘free BTC’ in the years to come. Coins held by ETFs or custodians might not be allowed (or limited by friction) to re-enter the open market for coins held by the custodians themselves. »
Using this tweet from the BlockStream CSO, U°Today highlighted a “ major warning » concerning the future of bitcoin for the attention of bitcoiners and the crypto community. Samson Mow’s intervention indeed speaks of a possibility of splitting bitcoin in two once BlackRock, Fidelity, VanEck and others enter the cryptocurrency market with their bitcoin spot ETFs.
He issued this alert during a recent video interview with Crypto Negocios. In his opinion, the financial giants will not fail to block bitcoins in their possession to form what he called “institutional bitcoin”. This category of bitcoins will look much more like burned crypto assets, that is to say sent to “dead wallets”. So, irrecoverable.
On the other hand, “normal bitcoin” will evolve, which will have more utility given that it will continue to be exchanged at the level of users and businesses. It therefore has more utility than BTC from institutions.
However, the entry of Blackrock and company into the sector is a good sign. Knowing that the latter is one of the largest fund managers with its billions of dollars of assets under management.
The message has been sent: the flagship crypto constitutes “ an investable asset class and the future reserve asset “.
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