The recent approval of spot Bitcoin ETFs (exchange-traded funds) by the US Securities and Exchange Commission (SEC) has sparked intense debate.

This pivotal move, overshadowed by centralization and market volatility concerns, poses a significant question. Could this be the catalyst for a new winter in the cryptocurrency market?

ETFs Defy Bitcoin’s Principles

SEC Chair Gary Gensler viewed the approval of spot Bitcoin ETFs with irony. He believes that such financial products defy Bitcoin’s principles, making the digital asset centralized. Gensler warned that this move could lead to further speculation and volatility in an already unstable market.

He emphasized that Bitcoin remains a highly speculative asset, often associated with illicit activities such as money laundering and ransomware.

“Satoshi Nakamoto said this was going to be a decentralized system. Think about the irony of those who say this week is historic. This was about centralization and traditional means of finance. Investors could already express themselves in Bitcoin… But now you can buy it through this thing called an exchange-traded product as well, centralized,” Gensler said.

Likewise, prominent investor Kevin O’Leary expressed skepticism about spot Bitcoin ETFs. He questioned the value they add for long-term investors like himself who view Bitcoin as digital gold. O’Leary’s stance highlights these ETFs’ high fees and lack of direct ownership. These features might not appeal to purists who prefer direct Bitcoin holdings.

Read more: This Is How to Invest in Spo

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Author: Bary Rahma

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