Author: Ryan Sean Adams, Bankless; Compiler: Songxue, Golden Finance
We have highly publicized the arrival of Bitcoin ETF. I expect we will have the same expectations for the Ethereum ETF, which will happen eventually.
Having said that, I want to give you a more sober perspective on Bitcoin ETFs and what they mean.
Don’t get me wrong. I’m celebrating the victory of the Bitcoin ETF today. The SEC should have approved this initiative years ago. However, by applying “arbitrary and perverse” anti-crypto logic, they have blocked Bitcoin ETFs for over a decade, harming the crypto markets they are sworn to protect through the existence of loss-making quasi-ETF products like Grayscale BTC.
They actually brazenly called this "investor protection."
It now appears thatGary Gensler’s only legacy is the SEC’s absolute loss of legitimacy, followed by court-ordered submission.
Yes, retail investors should have a Bitcoin ETF. Here's how to get your parents to invest more in cryptocurrency in their pension account. Wrapping Bitcoin in an ETF shell makes it suitable for brokerage accounts, financial advisors, and institutional banks — where it works in the traditional financial system, we should take advantage. We just have to remember that this is not Banking 2.0 in a bankless monetary system, but a strange hybrid - a kind of "Banking 1.5".
Through this process, we also gained a new ally. BlackRock and banks can now sell cryptocurrency IOUs (IOUs) to the public. This is where we should be cautious.
There is no doubt that pressure from bankers like Larry Fink pushed the SEC hard in the direction of approval. Despite politicians' anti-bank posture, bankers wield serious influence in Washington. Wall Street gets what it wants. They see the cryptocurrency market and want a product to sell. Regulators backed down.
This alliance between bankers and cryptocurrencies counters the power of anti-market political forces like Gensler. It is driven by a simple profit incentive – up! Thanks for the rise.
But in this victory we sowed the seeds for future conflict - a stop-gap one. When it comes to privacy, whose side do you think bankers are on? Pro-state or pro-cryptocurrency?
What about self-regulation? Do you think they want people to hold onto their private keys and leave the bank?
Or what about DeF? If DeFi starts eating into their profits, I think they will wholeheartedly support a ban.
Bankers would rather sell Bitcoin IOUs than Bitcoin. What I'm trying to say is that Wall Street is a fickle ally. Their loyalty to numbers will help us win some battles, but it won't help us win wars.
Gensler is just a small boss.
In the ultimate confrontation - the fight against corporations for a whole new monetary system - don't expect BlackRock to be on our side.
Don’t count on any bank.
Are bankers taking advantage of us, or are we taking advantage of bankers? The answer is yes. So let us celebrate today and be cautious tomorrow.
I’m not sure who controls the Bitcoin ETF Trojan horse – us or the banks? What I always hope for is for the algorithm to prevail.
Code not Monarch; Bankless not Blackstone.