Bitcoin Q&A: Why I’m against ETFs
Author of books and renowned crypto activist Andreas Antonopoulos believes that in the long term, the launch of a Bitcoin ETF will do more harm than good to digital gold, but is inevitable..
The writer says that immediately after the launch of the instrument, there is always a rapid growth of the underlying asset due to the entry of new investors into the market. However, in the case of cryptocurrency, this can lead to serious manipulation by market makers. He believes that ETFs will create a pseudo-decentralization effect in the ecosystem due to the fact that investors who do not own the keys will not be able to participate in the decision-making process. This will lead to a concentration of power in the hands of their holders and a weakening of democratization..
According to Andreas Antonopoulos, ETFs violate the basic principles of decentralized currencies, in which each user personally has complete control of their funds without resorting to third-party storage services. Although he does not deny that the launch of exchange-traded funds is inevitable due to the huge market appetite of institutional investors who cannot yet directly work with cryptocurrency due to technical and legislative difficulties..
The launch of not only exchange-traded funds is approaching, but also the working Filecoin network, which raised $ 257 million during last year’s ICO.
text: Ivan Malichenko, photo: CNN