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@ Erik
2023-12-30 20:39:05Welcome back bitcoin reader, a shiny toy is coming to the market soon! The new and approved bitcoin ETF (Exchange Traded Fund) will surely to hit the market any day now.
How many bitcoin ETFs do we as a human race need? - ZERO!
Thats a great question and according to the market, more than 0 is the answer. Apparently there are more than 10 (ten) bitcoin ETF applications with the SEC (Securities and Exchange Commission) as of this writing.* I believe it makes sense for gold and other assets to have plenty of ETFs and competition to help provide the investors the best value. However, bitcoin is a completely different monetary system entirely. Will these custodians of the bitcoin ETF actually hold the bitcoin, will they be targeted by hackers around the world like a honeypot, do they have the skills and expertise to manage and appropriate custody bitcoin? These are all questions we do not have the answers to. Traditionally, we wouldn’t question the exchanges or custodians when it comes to legacy assets and securities, but as many have stated before, BITCOIN IS DIFFERENT. Time to explore and discover the bitcoin rabbit hole and learn for ourselves.
Not to spread fear, uncertainty, and doubt but I do not want legacy enterprises safe keeping “my bitcoin” - I put quotations around ‘my bitcoin’ because if you do not have your private keys, then they are not your bitcoin/s. Private keys are similar to a password or key to freely access, transact and exchange your bitcoin. Legacy financial systems have plenty of examples where the balance sheets don’t add up and many exchanges and custodians have to pay millions in fines because of mismanagement, settlement issues, fraud, etc…
Perhaps a more provocative question is: Why can’t an individual, company, or country hold a bearer asset? Surely convenience is a factor but the main premise of a bitcoin ETF is because “these companies” cannot legally buy or hold bitcoin, and they need a medium (ETF) to buy and hold this new and weird asset.
Some things are better left alone and kept simple, bitcoin.
Resources:
https://decrypt.co/62912/high-profile-bitcoin-etf-applications
https://www.sec.gov/
https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/BitcoinFuturesETF.html