Bitcoin ETFs have made a meteoric entry into the cryptocurrency world this month. The recent approval of these funds by the US Securities and Exchange Commission (SEC) marks an important milestone. With billions of dollars flowing into US spot Bitcoin ETFs (BTC) in the first week, the market appears eager to embrace this new form of investment. But not everyone is equally enthusiastic.
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An explosive start for BTC ETFs
When BTC ETFs began trading on January 11, $10 billion flooded the market in just seven days, a clear sign of the long-suppressed demand for such products. It seems like a promising start, but there is also a downside.
Andy Bromberg, CEO of wallet developer Eco, emphasizes the possible risks of this development in an interview with Cointelegraph. Bromberg points to the increasing influence of traditional financial institutions due to the introduction of ETFs. In his view, these tools threaten to undermine Bitcoin’s original principles of decentralization and self-governance. Bromberg fears a scenario in which Wall Street institutions gain a dominant position in the BTC market, which contradicts Bitcoin's original goals.
“There is a world where people coming into the industry only care and think about price and not what this technology actually does, and they will buy these Bitcoin ETFs.” And one day they will “These Wall Street institutions own 70% of the Bitcoins in circulation (…) I’m not so sure that’s what we wanted to achieve.”
An important test for the crypto community
Still, Bromberg is happy that the SEC has given the green light to Bitcoin ETFs after years of resistance. According to Bromberg, this shows that the SEC is willing to listen to the wishes of the people, even if it obviously took longer than desired.
Now comes an important test for the crypto community. If they fail to teach new investors introduced to the market through ETFs the importance of self-governance, the entire crypto market could fall into the hands of Wall Street.
Bromberg paints a negative picture here. While on the one hand the influx of new money obviously has a positive impact on the price of BTC, he notes that losing Bitcoin and the broader crypto market to Wall Street would be a real disaster. “It will all have been in vain,” he says darkly.
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