BitMEX Founder Releases A Warning About Spot ETF Approval!

Bitmex is a popular crypto exchange. Its co-founder is Arthur Hayes. As we know, recently spot bitcoin exchange-traded funds (ETFs) have been pending regulatory approvals. Arthur Hayes has voiced his opinion on the potentially dire outcome if bitcoin ETFs are approved, and says an over-successful ETF run by traditional asset managers could ultimately lead to the cryptocurrency's downfall. His concern is rooted in traditional wealth managers. If approved, the approval will devalue BTC and dominate the Bitcoin ETF market. He recently highlighted his views on the risks of such entities holding all Bitcoin circulation.

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He reasoned that in all these cases BlackRock and similar firms "freeze assets, store them in a metaphorical vault, issue a tradable security and charge a management fee for their 'hard' work." He expresses such signals or warnings through one of his tweets. He fears that if the Bitcoin ETF is approved, the value of the crypto could fall. He also claims that these firms do not use what they put on behalf of their clients. As a result of them not using these things it presents a problem for Bitcoin if we take an extreme view of a possible future.

Among the problems that could arise if Bitcoin ETFs are approved are the public then choosing to buy bitcoins themselves, affecting the use of the bitcoin blockchain, and even the public opting for bitcoin ETF derivatives instead of holding bitcoins. Moreover, he expresses concern or predicts where bitcoins are stored only in vaults. But the sad fact is that due to the lack of network usage there miners no longer earn as bitcoins through new mining. If this happens then the death of the network will be certain and Bitcoin may disappear.

One concern remains if spot bitcoin ETFs are approved. Such concern is rooted in traditional financial asset managers. There is cause for concern if Bitcoin ETF approvals such as BlackRock dominate the Bitcoin ETF market, potentially undermining Bitcoin (BTC). And if it dominates the market, an over-successful ETF managed by traditional asset managers could ultimately lead to the downfall of cryptocurrencies. Which could be big bad news for cryptocurrency.