CDS Crypto News Spot Bitcoin ETFs Could ‘Completely Destroy’ Bitcoin
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Spot Bitcoin ETFs Could ‘Completely Destroy’ Bitcoin

If Wall Street giants achieve too much success, they will essentially

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Spot Bitcoin ETFs Could 'Completely Destroy' Bitcoin

Arthur Hayes, the former CEO of BitMEX, has issued a cautionary warning about the potential detrimental impact of successful Spot Bitcoin (BTC) exchange-traded funds (ETFs) on Bitcoin itself. In a blog post dated December 23, Hayes, who co-founded the cryptocurrency exchange BitMEX in 2014, articulated that the inherent value of Bitcoin lies in its dynamic movement. However, he expressed concerns that spot Bitcoin ETFs are designed to absorb assets and essentially lock them away in a metaphorical vault.

Spot Bitcoin ETFs Could ‘Completely Destroy’ Bitcoin

According to Hayes, if Bitcoin ETF issuers amass all available Bitcoin and investors opt for Bitcoin derivatives instead of holding the actual cryptocurrency, the transactional activity on the network could dwindle. This decline in transactions could result in miners losing their incentive to continue validating transactions.

Hayes articulated the potential consequences, stating, “The end result is miners turn off their machines as they can no longer pay for the energy required to run them. Without the miners, the network dies, and Bitcoin vanishes.” Intriguingly, Hayes speculated that in such a scenario, a new cryptocurrency monetary network might emerge, stepping into Bitcoin’s place and even advancing beyond Satoshi Nakamoto’s original vision of peer-to-peer electronic money.

Bitcoin ETFs Have the Potential to ‘Completely Eradicate’ Spot Bitcoin

Arthur Hayes’ reflections on Bitcoin coincide with the looming approval decision on all pending spot Bitcoin ETF applications, expected to transpire between January 5 and January 10, 2024, according to Bloomberg analysts.

Several prominent entities, including BlackRock, Grayscale, Bitwise, WisdomTree, Invesco, Galaxy, Fidelity, Ark Invest, Valkyrie, Franklin, Hashdex, Global X ETFs, and Pando Asset, are currently in anticipation, awaiting the verdict from the SEC regarding their spot Bitcoin ETF applications.

Spot Bitcoin ETFs Could 'Completely Destroy' Bitcoin

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