As the American SEC keeps rejecting and postponing the advent of bitcoin ETFs, crypto-supporters keep hoping to get one. And even though some believe the dawn of such ETFs is ineluctable, if it stays on the market for too long, it will not have positive consequences.
That’s exactly what Andreas Antonopoulos, an outstanding promoter of BTC and the author of «Mastering Bitcoin,» says.
What an ETF is — Antonopoulos Unveils
As per the report by CCN, Antonopoulos believes the long-term implication of the long-expected bitcoin ETFs will do rather the bad than good.
Explaining the point of view, the bitcoin-book author underscored that an ETF is a fund with a «curator.» The latter generates a financial instrument. It can be bought and sold, for instance, like a share, however, it is not a share at its fundamental.
Antonopoulos clarified that in case of the «big daddy,» ETF would hold it, and then trade shared in the BTC reserve. It, by the way, would represent reflect bitcoin’s value.
When investors pile their funds into such ETFs, just like with the «shares» — they do not hold them. In fact, they hold shares of BTC which are owned and kept by the «curator.» Thus, according to Antonopoulos’s words, there is a lot of space for crypto-traders and other market actors to speculate on the coin’s price.
Too Good Isn’t Good, Too
The bitcoin-guru admitted that the launch of ETFs had a significant effect on the market in the past. On the one hand, it helped to open up a market and make it more «luring» for investors. But on the other hand, ETFs triggered speculation on the market in the past.
Therefore, Antonopoulos concluded the same thing may happen to bitcoin ETFs in the long-term perspective.
ETFs Violate The Core Principle of Bitcoin
Also, Antonopoulos stated that ETFs go against the p2p nature of the most valuable cyber-coin in the world. ETFs, from what you can see, are under the control of their managers, so-called «curators.»