Bitcoin-ETF Can Bring More Problems Than Good: Expert
A notorious cryptographer and smart contracts pioneer, Nick Szabo, expressed doubts about the sensational bitcoin-ETF. The expert published several posts on Twitter, in which he criticized the crypto fund, considering its creation a risky idea.
As Szabo said, he "does not lobby" the project of the exchange traded bitcoin-fund, and also opposes any solutions, in which money is controlled by Wall Street traders. He believes that ETF can bring more problems than good.
I for one am not lobbying for an ETF or for Wall Street-managed money in general. It might cause more problems than it's worth. The recent sell-off by dumb money has or soon will deprecate many opinionated know-nothings in this space. We don't need new ones to take their place. https://t.co/s7OxZt9IrJ— Nick Szabo (@NickSzabo4) 12 августа 2018 г.
Szabo also added that the first cryptocurrency itself is a safer investment than gold. "By trusting third parties to store your assets, you lose the main advantage of bitcoin," — the cryptographer believes.
They are used to assets are already trust-based like bonds and stocks. OTOH most of the world's gold is under the custody of its owners. Bitcoin can be even more securely stored than gold. You are losing Bitcoin's main benefit by trusting somebody else to store it for you.— Nick Szabo (@NickSzabo4) 13 августа 2018 г.
The sentiments about ETF remain ambiguous, due to the discussion in the crypto community, concerning the real benefits of such a fund.
Previously, crypto experts strived for approval from the Securities and Exchange Commission (SEC), which is currently considering 9 applications for creating the bitcoin-ETF. Now some authoritative figures have changed their opinion, meaning the fund will not become a panacea for the first cryptocurrency.
Bill Ulivieri, the head of Cenacle Capital, a firm specializing in assets management, said that he lost respect for the crypto community because of the excitement around the ETF. According to him, possessing physical bitcoin stocks is associated with a number of problems, such as creating a backoffice, ensuring timely delivery and so on.
Referring back, the head of investment firm Pantera Capital also criticized bitcoin-ETF. As Dan Morehead believes, the regulators will not approve the creation of such a fund in the near future.