Industry Insider: Bitcoin ETFs are worthless and will be a means for traditional finance to take over and control the crypto market

In June this year, traditional asset management giants such as BlackRock, Fidelity, WisdomTree, and Invesco personally stepped forward to apply for a Bitcoin spot ETF. The shocking news injected vitality into the cryptocurrency market in recent weeks, with both the cryptocurrency market and several cryptocurrency-related stocks showing impressive gains. However, is a Bitcoin ETF really a major boon for the cryptocurrency market?

Viewpoint One: Bitcoin ETF is Worthless

Trezor Bitcoin analyst Josef Tetek expressed his opinion on the recent trend of traditional financial institutions like TradeFi following up on Bitcoin ETFs. He pointed out that even centralized exchanges (CEX) have never been the choice for investors who joined based on revolutionary Bitcoin claims, let alone ETFs.

Josef Tetek views the easily producible Bitcoin ETF as a worse product or service than CEX, as people cannot truly withdraw Bitcoin. On one hand, this may lead to a flood of virtual Bitcoin "paper Bitcoins" entering the market, suppressing the Bitcoin price. On the other hand, it loses the characteristics and significance of Bitcoin, which is the ownership of one's assets without the need for permission from others.

He explained:

The true way to own Bitcoin is by holding it and its keys in a self-custodial manner, and all other methods come with risks.

Additionally, Bitcoin ETFs may distort the market, disrupt Bitcoin's original currency effect, and have negative impacts.

Viewpoint Two: Bitcoin ETFs Are a Way for Traditional Finance and Governments to Control the Crypto Market

Protocol founder lists event timeline

Pear Protocol co-founder Huf analyzed extensively, stating that Grayscale sued the SEC last year after the SEC rejected their request to convert GBTC into a spot ETF. The court's ruling, expected in the coming weeks, will set the foundation for potential Bitcoin spot ETF standards. If BlackRock is approved in the near future, it is no coincidence.

Furthermore, if the court supports Grayscale's position, the possibility of BlackRock's approval will significantly increase.

Exchange personnel discover crisis

Dubai exchange MaskEX Vice President Ben Caselin told Cointelegraph that the various accusations made by the SEC in recent months are aimed at trying to weaken native crypto companies like Binance and Coinbase, paving the way for traditional asset management companies like BlackRock to take over the crypto business and strengthen control over the crypto market.

Ben Caselin further researched the details of BlackRock's submitted documents and discovered a crisis: "In the event of a hard fork, BlackRock will be able to decide on the network that best suits its business development." This means that BlackRock will be able to influence the direction of Bitcoin through this, or guide institutional and mass mainstream adoption.

He pointed out:

The deeper traditional financial institutions delve into the realm of crypto assets, the more likely they are to turn Bitcoin into another asset class, neglecting its original purpose and true revolutionary value proposition.