A personal view on the Bitcoin ETF and its implications for the crypto market.
Greetings friends of Steem Alliance, I hope you are all very well and taking advantage of this boom in the price of cryptocurrencies.
These last few weeks have been very particular in terms of news affecting the crypto environment in general, the fine against Binance (world's leading exchange) as well as the departure of its CEO impacted strongly at the time, but despite that, rather there has been an increase in cryptocurrency prices.
But beyond this there is something that has everyone in expectation of what may happen, and this is the approval or not of the ETF of Bitcoin by the SEC, this would imply the imcorporation of hundreds of millions to the crypto environment, which is good, yes, but has some points against it, at least this is what I think about it, this I would like to discuss below.
Advantages that the approval of the Bitcoin ETF may bring
In particular, I believe that the entry of large capital into a market generates confidence, especially if it is institutional capital, as in this case through BlackRock,, which is the company that is applying to the SEC for approval of the ETF. This, in addition to confidence, can lead to price stabilization and make it more difficult to manipulate the market.
It is well known that a market with little capitalization is easy for a whale to manipulate, but a solid market with a large capitalization is not so easy for a strong hand to move at will.
We could say that it would increase the regulation of the crypto sector, which is good on the one hand, because there may be less electronic fraud, however, this goes against that freedom that we generally seek when we enter this crypto sector, more freedom with the use of our money, as well as the anonymity, and the speed that it gives us.
Disadvantages that Bitcoin ETF approval may bring
This company, BlackRock, manages more than 11 trillion dollars in capital, which implies that with approximately 1% of its funds it could buy all the Bitcoin available in the exchange houses, and thus centralize the holding of BTC, this is one of the main problems I see of this approval, and everything that could happen from here.
A centralized environment will allow greater control by a few, in this case this company, and it is not a good thing, this is totally against the main root for which the Bitcoin was created, it was created to give us the possibility to get rid of the financial centralization that for so long have had the central banks, starting from the FED or Federal Reserve of the United States, who exercises a great dominance of the world economy through its currency, the dollar.
So, that a company highly related to the U.S. government is the one exercising such control is not a good thing, I will insist on that. At the moment it could increase the value of Bitcoin and most cryptocurrencies in an exaggerated way, but in the long run, the truth is that I don't quite like how this possible reality of crypto market dominance looks.
Conclusion
As you can see, in financial matters, everything has its nuances, its good and bad sides, but even so, they are steps forward to a new reality, the important thing is to adapt to what is emerging, support the capital we have and take advantage of opportunities in a controlled and conscious way.
I hope this post has contributed something for you. These are my impressions, it is my personal opinion what I have shared here, if you agree or not, I would like to know, greetings.
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BTC centralization, not exactly a good thing. My promotion on Twitter.
https://x.com/josevas217/status/1730555777587224767?s=20
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This is an interesting post you have shared on your personal view on bitcoin etf and it's implication for the cryptomarket.
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