Bitcoin ETF will move crypto away from its true value, says expert

Rick Steves

“The approval of the BTC ETFs will see new institutional and retail money flow into crypto, increasing the liquidity and price of Bitcoin, which is ultimately good for the market. However, it is just another example of crypto becoming more centralized and moving further away from its true value and potential.”

In a climate of heightened anticipation, the global cryptocurrency community is on the edge of its seat as the long-awaited decision on the approval of the Bitcoin Exchange-Traded Fund (ETF) in the United States looms large.

With the U.S. Securities and Exchange Commission (SEC) expected to make a pivotal announcement today, industry experts are buzzing with predictions and analyses, forecasting the potential impact on the crypto market.

XReg’s Nicky Gomez expects larger divide with the crypto purists

Nicky Gomez, Senior Partner at XReg Consulting, brings a unique perspective to the discussion. Gomez envisions the approval of the Bitcoin ETF as a catalyst for an influx of institutional and retail capital into the crypto space. This surge in investment is predicted to elevate Bitcoin’s liquidity and price, marking a positive turn for the market. However, Gomez also raises a cautionary flag, expressing concerns about the growing centralization of crypto and its potential departure from core values. With an eye on the geopolitical landscape, Gomez suggests that global uncertainties may influence the adoption of decentralized crypto.

“The approval of the BTC ETFs will see new institutional and retail money flow into crypto, increasing the liquidity and price of Bitcoin, which is ultimately good for the market. However, it is just another example of crypto becoming more centralized and moving further away from its true value and potential. Ultimately, this will spur a larger divide with the crypto purists. The adoption of truly decentralized crypto will be more profoundly impacted by financial instability risks caused by current geopolitics.”

“Bitcoin ETF will be a distraction on the adoption of BTC”

“Over the last few years, we have witnessed a convergence between centralized crypto (CeFi) and traditional finance (TradFi). Crypto assets have been steadily gaining TradFi’s acceptance as a new speculative asset class, and service providers are coming under increased regulatory scrutiny, making CeFi increasingly more like TradFi. The approval of the Bitcoin ETF is yet another example of this convergence. As a result, we’ll see the gap widen between CeFi and true DeFi or the crypto purists who stand for truly censorship-resistant, decentralized technology.”

“The Bitcoin ETF will encourage greater speculation on the price of BTC from a broader audience, but it will be a distraction on the adoption of BTC for what it was originally designed for, a peer-to-peer payment network outside of the traditional financial system.”

“Geopolitical risk, which threatens the financial stability we take for granted in the Western world, is arguably the highest it’s been since the inception of crypto. This has the potential to catalyze wider adoption of Bitcoin (and crypto on the whole) as an alternative store of value and method of payment, and DeFi as an alternative financial system.”

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