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Investing.com – While much of its recent rise is due to anticipations of the launch of spot Bitcoin ETFs in the United States, with investors believing it will allow massive inflows of new capital into the crypto market, some believe it could insidiously destroy Bitcoin.
This is notably the case of investor Arthur Hayes, former CEO of BitMex and widely followed crypto analyst, who declared in a recent blog post that “if ETFs managed by asset managers [de la finance traditionnelle] are too successful, they will completely destroy the “.
He indeed explained that if BlackRock (NYSE:) and the other aspirants to the issuance of Bitcoin ETFs accumulate all the BTC, there will no longer be transactions in bitcoins, but only exchanges of ETFs, and the miners who secure the bitcoin network in exchange for newly created bitcoins “will no longer be able to afford to pay for the energy needed to secure the network.” As a result, they would turn off their machines. However, Hayes clarified that “without miners, the network dies and bitcoin disappears”.
The investor also said that the death of bitcoin “would create space for another crypto-currency network to grow in its place. This network could simply be a reboot of bitcoin or something different that would be an improved adaptation of the original bitcoin. Regardless, citizens will once again have a monetary asset and financial system not controlled by the state.”
Regarding spot BItcoin ETFs, it will be recalled that this week, a leak of confidential discussions between the SEC and the leaders of the 13 asset managers in the race to put a spot bitcoin ETF on the market revealed that the SEC had set a Dec. 29 deadline for “final updates” to their applications, Reuters reported.
Separately, Eric Balchunas, ETF specialist at Bloomberg, said in a recent tweet that “BlackRock expects to launch [son ETF bitcoin spot] with $10 million on January 3.”
On another note, the famous manager of Ark Invest funds, Cathie Wood, warned that after Bitcoin benefited in anticipation of the approval of Bitcoin ETFs, the confirmation could cause the cryptocurrency to fall, if investors “sell the news” after having “bought the rumor”.
Unlike Hayes, however, she believes that in the longer term, the SEC’s approval of these ETFs will allow institutional investors to invest more in crypto, which will help support the price.