The SEC approves Bitcoin spot ETFs, should we celebrate?
Breaking News: The SEC has finally approved Bitcoin spot ETFs in the US, but is it really a cause for celebration?
The Irony:
‍The essence of Bitcoin was to sidestep traditional banking and financial systems. Yet now, it's embraced and sold by the world's largest financial institutions.
The Reality:
The move doesn't symbolise an institutional endorsement of Bitcoin's philosophy. Instead, it represents a simple business and marketing strategy aimed at capitalising on the ongoing craze.
The Financials:
According to the Financial Times, big players like BlackRock and Greyscale will charge 0.5% and 1.5% fees respectively. Their goal is to generate real US dollar revenue đź’µ and upsell other high-margin products to new young clients.
The Impact:
For Bitcoin believers, this is bad news. The philosophy of Bitcoin as an alternative to traditional finance has essentially failed.
For speculators and Wall Street, this is a win. Bitcoin price will likely go up, while institutions will cash-in large fees in the meantime.
The risks:
‍Dennis Kelleher, speaking to the Financial Times, said the approval “is a historic mistake that will not only unleash crypto predators on tens of millions of investors and retirees but will also likely undermine financial stability”.
So what's left of Bitcoin other than speculation?
đź’ˇ Any thoughts?
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