In the past few weeks, newly allowed U. S Bitcoin ETFs have become very popular because a lot of people are buying and trading them. However, these ETFs are not related to the real purpose of Bitcoin, which is to help people make direct transactions without using traditional middlemen.
Investors who buy Bitcoin ETFs just track the price of Bitcoin. They don’t have the asset. People who use ETFs don’t get the main benefit of Bitcoin, which is to give everyone the opportunity to have financial control and independence. This is exactly what the mysterious person who created Bitcoin, Satoshi Nakamoto, wanted when they wrote the Bitcoin white paper 15 years ago.
The big issue with Bitcoin ETFs is that they just copy how our old financial system works, which is based on outdated technology. Bitcoin ETFs use middlemen to handle transactions, which brings back the risk of relying on others that has been part of finance for a long time. Think about companies like Lehman Brothers, and also more recently FTX or Silicon Valley Bank. Here are some examples of old-fashioned investors making mistakes with their clients’ money and losing lots of money quickly.
Cryptocurrency is a new way to escape from our old and outdated system that only works for 9% of Americans. Bitcoin ETF investors face risks from other parties, and they can only use the U. S But the main point of cryptocurrency is for anyone to be able to use it without needing permission and for it to be decentralized.
ETFs have boundaries, while crypto has no restrictions. The two are completely opposite from each other.
“Bitcoin ETF investors don’t actually own the most important part of crypto, which is the secret code that proves they are the only owners of their digital tokens. ” Having these keys is the only way for people to use crypto, have Bitcoin, get involved with decentralized finance, and use decentralized apps with ownership and freedom. Private keys are like keys to the future of money and the Internet. ETFs can never give that.
In addition to going against the usefulness of crypto, we should remember that Bitcoin ETFs are pricier than choosing to securely keep your own digital assets. With Bitcoin ETFs, people pay fees of 0. 2% to 15% to invest in Bitcoin without actually owning it. Moreover, it’s just as important for companies using crypto as it is for individuals to stay safe and secure. Companies that handle ETFs need to keep their clients’ money safe. They should use strong security and governance to prevent problems like the FTX disaster.
Pro ETF means exchange-traded funds that are designed to track the performance of a specific index or sector of the market.
Does that mean that Bitcoin ETFs are not good for crypto. Not at all. We don’t dislike ETFs at Ledger. Even though they are not what crypto aims for, these regular financial tools will help Bitcoin in many ways.
Bitcoin ETFs can introduce more people to the world of cryptocurrency, and make Bitcoin more well-known and used by many. The ads for Bitcoin investments are increasing in the United States. Soil says that ETFs are the best way to market Bitcoin. And because Bitcoin is being accepted by big financial companies, it will be harder for people to think it’s only used for illegal things.
Next, I think that Bitcoin ETFs will help people get into owning and managing their own cryptocurrency, just like centralized exchanges did in the past. A good thing might happen where many people start investing in Bitcoin through ETFs, understand the advantages of owning digital assets, and then choose to have control over their own wealth. Starting in 2004, the approval of the first gold ETFs didn’t stop people from owning gold themselves. Instead, it made owning gold more popular.
Bitcoin ETFs are like dressing up a window, but they are actually real. We can use them as a way to move towards truly owning and controlling cryptocurrency.
Despite what skeptics think, Bitcoin’s future isn’t just to be a speculative asset held in investment funds like ETFs that regular investors can buy. Instead, it’s a big change that will change the rules of owning things online and change how we trade things online, like how the internet changed how we share information for a lot of people.
Today, many people are just starting to understand all the ways that crypto can be used. It’s like how people didn’t fully understand the internet back in the late 1990s. This big change takes a long time, not a short one. Bitcoin ETFs are a small part of the bigger process of using crypto for financial freedom. Crypto will reach its full potential when regular users have real control over their own assets.