Common readers of mine will remember my article on the BlackRock Spot Bitcoin ETF application getting rejected by the SEC due to the filing being "inadequate" (You can catch up on the story so far here: https://www.publish0x.com). Now that your caught up on with the article.
The CEO of BlackRock Larry Fink one of the main applicants in the Spot Bitcoin ETF has recently come out to say that "Bitcoin could revolutionise finance" but with his attempt to create a Spot Bitcoin ETF is he straying from the path of true Bitcoin?
An ETF is an asset that an investor can buy or sell but in the past only Future Bitcoin ETFs (Basically predicting the future price of bitcoin) have been approved. A Spot ETF allows the investor to trade Bitcoin at the price it is currently at.
The original ideals of Bitcoin are and will always be decentralisation, ownership and accessibility. This "ETF" label allows it to be traded on the US stock exchange but at the same time kills the ownership of bitcoin because when you buy an ETF you don't actually own any Bitcoin or other securities the price of the Bitcoin ETF is the same as Bitcoin but its not actually Bitcoin.
This in turn gets rid of the decentralisation because you can have ETF's taken off you by the government whereas if you own bitcoin on the blockchain only the people who know your secret phrase can take your bitcoin.
The only upside is that it does improve accessibility and is free promotion for bitcoin so we could see a price increase if A Spot Bitcoin ETF eventually gets approved. However the SEC are going to extreme lengths to prevent this from happening so I think it will be unlikely in the near future.
Until next time Happy Cryptoing!
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This is was not intended to be investment advice! The article you have just read was written by an incompetent fool. Please always double check the facts and do your own research.
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