You may have already heard that Blackrock, the largest asset manager in the world, has filed for a bitcoin (BTC) spot ETF. However, the initial reactions to this are divided. On the one hand, it seems like good news: it will lead to new capital flowing into the crypto industry. But there are also people who are a lot less enthusiastic. Cardano (ADA) founder Charles Hoskinson is one of them.
Is the Bitcoin ETF really that good?
According to Hoskinson the Blackrock ETF, if it comes to be, will bring nothing good for the industry. He cites proponents of it’too eager‘. Hoskinson believes the ETF is part of a larger plan by the US government: to ban all crypto except bitcoin.
Some bitcoin maximalists, proponents of bitcoin but not other cryptocurrencies, applaud the ETF. It would lead to wider adoption of bitcoin if the ETF application is approved. But the question is who will ultimately benefit most from this adoption. The public or big money?
Bitcoin’s value may reach new heights as major institutional investors flock in. But the consumer will probably benefit a lot less from this. Ultimately, it may be a repetition of the historical economic pattern. A small group of entities owns the most capital, in this case the most bitcoins. This scenario is diametrically opposed to the ethics of crypto, which is decentralization and financial freedom for all.
What does the ETF mean for the crypto sector?
Another point, which parallels this, prominently threw crypto Twitter figure Scott Melker in an interview with Yahoo Finance. He said Blackrock’s ETF feels like a takeover of the traditional financial industry. Its filing comes as companies that built the crypto sector, such as Binance and Coinbase, are being sued. Striking timing you would think.
However, Blackrock doesn’t seem that evil. Coinbase is included as a custodian in the ETF plan. The financial institution therefore seems to want to maintain a bridge with companies from the crypto sector. Perhaps the aforementioned concern is therefore not fully justified. In any case, it would be a huge development if the ETF is approved. First we have to wait and see what the American regulator thinks, and that could take some time.