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Many stakeholders in the crypto industry have welcomed the idea of traditional finance firms offering a <\/span>Spot Bitcoin Exchange-Traded Fund<\/span><\/a> (ETF) as they believe it will further drive crypto adoption. However, the former CEO and co-founder of crypto exchange BitMEX, <\/span>Arthur Hayes<\/span><\/a>, seems to be against the move.<\/span><\/p>\n In a <\/span>post<\/span><\/a> published on his Substack platform, Hayes made his displeasure known regarding the recent wave of Spot Bitcoin ETF applications by prominent traditional financial (TradFi) institutions, including BlackRock.<\/span><\/p>\n Contrary to public opinion, he doesn\u2019t believe these <\/span>TradFi institutions<\/span><\/a> are bullish on crypto. Instead, they are moving to become \u201ccrypto gatekeepers\u201d to balance their deposit base, explaining that these companies intend to offer ETFs or any similar investment product with crypto as its underlying asset to achieve this.\u00a0<\/span><\/p>\n He stated that since these fund managers will be the \u201conly game in town,\u201d they can charge investors enormous fees in exchange for their investment products.<\/span><\/p>\n According to him, institutions like BlackRock recognize that cryptocurrencies can be used to hedge against inflation and could have a significant impact on the economy going forward. So they want to have it \u201cunder their control\u201d when that happens.<\/span><\/p>\n He believes the only times these firms have done a \u201cgood job\u201d is to paint the crypto industry and cryptocurrencies in a bad light to the <\/span>government<\/span><\/a>. As such, they will have a hard time changing the narrative to circumvent the federal government\u2019s proposed inflation tax on bank depositors.<\/span><\/p>\n The Bitmex founder suggested that the United States Securities and Exchange Commission\u2019s (SEC) clampdown on the crypto industry was never about the technology itself but who owned it.\u00a0<\/span><\/p>\n He believes those who had earlier tried to get a Bitcoin ETF approved faced disapproval based on their status. However, the regulator seems more welcoming to the idea because of the prestige of BlackRock and its CEO, <\/span>Larry Fink<\/span><\/a>.\u00a0<\/span><\/p>\n<\/p>\n Hayes noted that the banks and financial regulators could collaborate to uphold the dollar\u2019s sovereignty. According to him, this can be easily achieved by both parties agreeing to ensure that all crypto redemptions are made in the US dollar and not the \u201cphysical crypto\u201d itself.\u00a0<\/span><\/p>\nProblems With BlackRock Spot Bitcoin ETF Filing<\/h2>\n
BTC price falls to $26,300 territory | Source: BTCUSD on Tradingview.com<\/a><\/pre>\n
TradFi Doesn\u2019t Care About Decentralization<\/h2>\n