Looking At The Crypto Glass Half Empty: Will A Bitcoin ETF Kill Bitcoin Or Allow It To Grow Further?
Enthusiasts in the cryptocurrency market are discussing the possible effects of a Bitcoin ETF. The U.S. Securities and Exchange Commission could soon approve the first Bitcoin ETF, and virtual currency investors seem to be very excited about it.
During 2018, Bitcoin and virtual currencies were in a bear trend that affected the whole industry. Because of this reason, investors and the crypto community is very bullish about the upcoming events in the crypto industry. One of these events is related to the approval of the first Bitcoin ETF at the beginning of 2019.
Nevertheless, there are some investors and experts that are not so sure about the positive effects of this new Bitcoin ETF. The Reddit user mariner2525, wrote a post in which he says that Bitcoin ETFs are the worst thing that could ever happen to the virtual currency market.
He wrote on Reddit:
“Bitcoin ETF is the worst thing that could ever happen to Bitcoin. They’ve been rigging gold and silver – they will totally rig bitcoin price by diluting it with derivatives. After ETF – and a temporary spike in price – bitcoin will be dead low all the time.”
In the post, some investors were opposed to his views while others were in line with what he said. However, they marked that Bitcoin could even grow 100% if the Bitcoin ETF is backed by physical Bitcoin and not other fiat currencies.
Nevertheless, this is not the first time that a cryptocurrency enthusiast or expert is against a Bitcoin ETF, or at least sceptical. The crypto author and recognized figure in the space, Andreas Antonopoulos, said that the Bitcoin ETF is a ‘terrible idea,’ explaining that investors would not have control over their keys, addresses and tokens.
A Bitcoin ETF aims at making Bitcoin a tradeable instrument specifically designed for the stock market. That means that its supervision will be made by a custodian that will hold the actual Bitcoin for the investor. This is something that, according to Antonopoulos, violates the peer-to-peer money behind Bitcoin.
“ETFs fundamentally violates the underlying principle of peer-to-peer money, where each user is not operating through a custodian but has direct control of their money because they have direct control of their keys,”
The U.S. SEC will be taking a decision about the Bitcoin ETFs that have been presented to the regulatory agency. Perhaps, VanEck’s proposal has the biggest chances to receive an approval in February 2019. Although it is not clear what will happen with the market, enthusiasts, as well as experts, are waiting for it to be approved.