According to Coincu, Arthur Hayes, a cryptocurrency pioneer and founder of Maelstrom Fund, has expressed skepticism about the approval of a spot Bitcoin ETF and its potential implications for the crypto space and users. Hayes warns that a large BlackRock ETF may kill Bitcoin by centralizing the currency and aligning it with state interests. He presents a hypothetical scenario where traditional financial figures and institutional entities acquire a significant portion of freely traded Bitcoin, potentially introducing Bitcoin mining ETFs and highlighting BlackRock's involvement in mining operations.
Hayes raises concerns about asset managers like BlackRock, referring to them as 'agents of the state' who act according to state directives. He argues that the actual use of Bitcoin could become limited as it transforms into a financial asset rather than a decentralized currency. Users would exchange their fiat for a derivative, and the asset manager would store Bitcoin in a custodian. This could result in a massive amount of immovable Bitcoin, potentially harming the cryptocurrency.
Hayes also raises concerns about institutional entities gaining control over the network's consensus mechanisms by owning a large portion of miners. Certain upgrades necessary for Bitcoin's robustness may not align with traditional finance institutions' interests. Hayes worries about the concentration of Bitcoin in the hands of a few institutions, potentially undermining its core value as a decentralized means of value transfer. While broader Bitcoin adoption may boost its price, he questions if it will truly enhance Bitcoin's usefulness in the long run. He suggests considering the long-term implications of these developments and whether the short-term excitement around a Bitcoin ETF approval is worth the potential consequences of institutional consolidation in the crypto space.
