When the term Bitcoin ETF is mentioned in the crypto community, it is likely accompanied with a positive response precisely because of its tendency to skyrocket the token to a larger platform for investment, thus birthing bigger returns.
However, a cryptocurrency investor has expressed his concern for what might become of Bitcoin if the SEC agrees with the Bitcoin ETF applications. Certain that the token will lose its value, the user under the pseudonym “mariner2525” cried out via Reddit saying ;
“Bitcoin ETF is the worst thing that could ever happen to crypto. They’ve been rigging gold and silver – they will totally rig Bitcoin price by diluting it with derivatives.
After ETF- and a temporary spike in price – Bitcoin will be dead low all the time”.
In response to mariner’s view, some investors have opposed him, explaining that Bitcoin has a 100% growth possibility if the Bitcoin ETF is backed by Bitcoin itself and not fiat currencies.
Mariner’s beliefs transcend beyond the chat forum, long before the user had expressed his disapproval of the Bitcoin ETFs, crypto author and advocate Andreas Antonopoulos had termed it a “terrible idea” stating that it suppresses investor control over their keys, addresses, and hardware tokens.
Antonopoulos explained that Bitcoin ETFs are aimed at making Bitcoin a tradable instrument suited for the stock market, which places it under the supervision and control of a custodian who holds the actual Bitcoin while investors are left with a share in their funds and not the Bitcoin itself.
In his words ;
“ETFs fundamentally violates the underlying principle of peer-to-peer money, where each user is not operating through a custodian but has direct control of their money because they have direct control of their keys”
As mixed reactions trail the crypto scene, investors are anticipating The U.S. Securities and Exchange Commission’s (SEC) decision to either accept or reject the nine ETF applications currently in review. Although the SEC had previously disproved the applications, a new date was proposed as a deadline for the much-awaited ETF review.