Bitcoin ETFs: A Detour on the Road to Crypto Sovereignty
Bitcoin ETFs have surged in popularity despite offering only price exposure, not asset ownership, prompting discussions on crypto's true value and sovereignty.
February 2, 2024
The Truth Behind Bitcoin ETFs
Recently launched U.S. Bitcoin ETFs have seen booming popularity, yet they stand removed from the intrinsic purpose of Bitcoin, providing merely price exposure without asset ownership. Bitcoin's anonymous creator, Satoshi Nakamoto, intended Bitcoin for financial autonomy, a stark contrast to the intermediary reliance of ETFs.
Crypto vs. Traditional Financial Risks
Bitcoin ETFs also reignite the old finance system's counterparty risks, a lesson echoed by incidents like Lehman Brothers and FTX failures. Meanwhile, cryptocurrency embodies decentralization and permissionless access, with ownership asserted through private keys - a reality against which ETFs can't compete.
Bitcoin ETFs' Role in Crypto Advocacy
Despite their contradictions, Bitcoin ETFs play a beneficial role by welcoming new users and legitimizing the crypto protocol within stringent financial circles. They're seen as stepping stones towards the crypto ecosystem, similar to centralized exchanges in the past, eventually leading users toward genuine digital sovereignty.
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