Bitcoin ETFs (exchange-traded funds) getting a green light from the US Securities and Exchange Commission is one of the most anticipated developments in the cryptosphere. While a lot of analysts and crypto-enthusiasts want the SEC to give the go signal, some analysts feel that Bitcoin ETFs will destroy what Bitcoin stood for-decentralization.
The excitement is mainly because, with the approval of SEC, Bitcoin will be able to see a massive surge in the investments and this would also help the adoption of Bitcoin in the mainstream market. On the other side, Michael Venuto of Toroso Investments feels that Bitcoin ETFs will be a wonderful investment vehicle and he would buy it for his clients. However, the green light is not good for the crypto.
Bitcoin ETFs: Good or Bad?
When Bitcoin achieved the $20,000 mark in 2017, it was expected that the SEC would give approval by 2019. However, it’s February of 2020 now but the go signal is nowhere close. The original vision of crypto by Satoshi Nakamoto was to create a decentralized currency and to get rid of the trusted third party. However, that doesn’t seem to be the case if the SEC approves the BTC-ETFs.
BTC-ETFs would enable investors buying shares of Bitcoin without having it. In other words, the Bitcoin will be completely owned by the third party. This is not decentralization and totally opposite to Satoshi Nakamoto’s vision of decentralized currency.
2020 will be the year of BTC-ETFs
With so much delay in getting the approval, a lot of investors have lost hopes of getting the green light. However, there are still optimistic investors that believe 2020 will be the year of BTC-ETFs. Last year, Facebook introduced its cryptocurrency in front of the whole world which issued a public reminder that cryptocurrency will not wash out.
Crypto advocates feel that with the green light given to BTC-ETFs, investors will be able to withdraw their money as fiat currency anytime. Honestly, this is as good as it gets for investors but isn’t good for Bitcoin.
Featured image from Pixabay
