BlackRock ETF Could Be a Menace to Bitcoin, Cautions BitMEX Founder Arthur Hayes

Crypto News– Arthur Hayes, a prominent figure in the world of cryptocurrency and the founder of Maelstrom Fund, has issued a stark warning about the potential dangers a large BlackRock ETF could pose to Bitcoin. According to Hayes, such an ETF could lead to the centralization of Bitcoin and its alignment with state interests, ultimately putting the cryptocurrency’s core principles at risk.

BlackRock ETF Could Be a Menace to Bitcoin, Cautions BitMEX Founder Arthur Hayes

In Hayes’ hypothetical scenario, traditional financial authorities and institutional players amass a significant share of freely traded Bitcoin. He speculates that these institutions might introduce Bitcoin mining ETFs, underscoring BlackRock’s involvement in mining operations as a key example. Hayes raises concerns about asset managers like BlackRock, labeling them as “agents of the state” who act in accordance with state directives. If these compliant institutional entities hold cryptocurrency within an ETF structure, it would align with the state’s desire to keep citizens within the fiat banking system, primarily for taxation purposes.

Hayes argues that, as Bitcoin transforms from a decentralized currency into a financial asset, its actual utility becomes restricted. Users trade their fiat currencies for a derivative, and the asset manager holds Bitcoin in a custodial fashion.

The crux of the issue is that a BlackRock ETF, by accumulating a massive quantity of Bitcoin, could essentially render a significant portion of this cryptocurrency immovable, potentially undermining its inherent principles and harming its overall viability.