Published
5 years ago on
September 04, 2018
“Such situations expose the market to manipulation by market makers. Antonopoulos says that this could turn out to be a terrible thing for the digital currency in the long-run. He says that the Bitcoin ETF could be bad for the digital currency as it would create a pseudo-centralization into the crypto-ecosystem. He says that investors would shed away from their responsibilities of holdings keys and will, in turn, play no part in the decision-making process in the crypto-ecosystem. This could also possibly lead to the centralization of the power, of the Bitcoin network, in the hands of custodians. He believes that in the long run, this could prove to be detrimental to the very ‘decentralized’ nature of the digital currency.â€Antonopoulos himself adds:
“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 keysâ€.Indeed, Antonopoulos does believe that the acceptance of a Bitcoin ETF will be a very big deal and will create a huge buzz through the markets. By opening up to institutional investors, Bitcoin will reach mainstream news again and Antonopoulos expects to see a similar reaction to this, as we did in the cryptocurrency boom of 2017 and 2018 after the approval of Bitcoin Futures Contracts. But, in the long run, after this buzz dies down, the markets will become more volatile and more susceptible to manipulation from the institutional investors that jump on board as a result of a Bitcoin ETF. References Coinspeaker
