Andreas Antonopoulos posted a new video in which he addresses the potential problems of Bitcoin ETFs, which have become the most desired addition to the crypto market by some users and investors. With his objection towards the ETFs Antonopoulos joins the ranks of famous ETF critics.
In his video message, Bitcoin evangelist Andreas Antonopoulos addresses current issues resulting from the ongoing discussion surrounding the Bitcoin ETF. After a brief and neutral explanation of how ETFs work, he goes into more detail about what an ETF would mean for Bitcoin. His prediction, however, does not look very bright.
Above all Antonopoulos sees in the drama of the Bitcoin ETF the hope of investors that the price could shoot up. He compares these developments to the rise in the price of gold after the commodity became available to investors. However, with this example, he also notes the risk of price manipulation. Hence, an ETF helps market participants with a great market power to determine the price of the asset outside the ETF.
For this reason, Antonopoulos positions himself against a Bitcoin ETF and calls this a “terrible idea.” Although he believes that it will happen eventually, this has a negative impact on the ecosystem.
As a relevant point for his refusal of a Bitcoin ETF, he mentions that the ETF investors do not get the same opportunities as holders of the cryptocurrency. If a holder is in possession of his private keys, this entails rights and responsibilities, such as the right to choose, to switch between exchanges or to influence decisions in the case of a fork. An ETF would centralize these rights and decide on behalf of all ETF investors; this contradicts the basic idea of a peer-to-peer currency.
Last month, the proposal to launch an ETF for Bitcoin by Winklevoss twins Cameron and Tyler Winklevoss was rejected again by the Securities and Exchanges Commission (SEC). It was the third time that the regulator rebuffed the brothers’ initiative. Besides that, the decision for the most anticipated ETF, proposed by VanEck-SolidiX in collaboration with CBOE has was delayed for September 30.
As a result, the crypto community started a discussion about the pros and cons of a traded fund for bitcoin. One of the voices that spoke up in the process was Ethereum founder Vitalik Buterin who said that if it was up to him, the adaptation of cryptocurrencies should again be in the foreground. By contrast, a Bitcoin ETF only manifests the use of cryptocurrencies as an investment asset.