Former CEO of BitMEX, Arthur Hayes, has some words of wisdom to share in the volatile world of cryptocurrencies. According to him, if the spot Bitcoin ETF becomes extremely popular, it could even destroy the crypto itself.
Arthur Hayes: Spot ETFs could wipe out Bitcoin!
Arthur Hayes, one of the leading names in the cryptocurrency world, expressed his concerns this time. Hayes underlines Bitcoin’s inherent value, which comes from its ever-changing character. However, according to Hayes, the real danger comes from spot Bitcoin ETF products. Because these products aim to take assets and keep them in a safe.
If these ETF issuers hoard all available Bitcoin, driving investors away from traditional “HODLing” and into BTC derivatives, that’s exactly how Hayes sees the end of the world. In this terrible future, transaction activity on the network will decrease. Additionally, miners will no longer be motivated to verify transactions.
As miners become more able to cover their energy costs, Hayes warns they will eventually be forced to shut down their equipment. The result is that Bitcoin disappears into cyberspace and the network fragments.
SEC’s Bitcoin ETF decisions are in the focus of the market
Despite this bleak forecast, Hayes says there is a chance for Bitcoin to rise from the ashes. He suggests that a new cryptocurrency would go beyond Satoshi Nakamoto’s initial idea. It also says it will offer a decentralized financial system independent of traditional financial institutions. Before Hayes’ thoughts, cryptokoin.comAs you follow from , the possible approval of multiple spot Bitcoin ETF applications is coming, expected to occur between January 5 and January 10, 2024. Industry giants such as Fidelity, BlackRock, Grayscale and others are awaiting the SEC’s decision. This decision will either lead to the collapse of crypto or signal a paradigm shift.
In a related development, the price of Bitcoin has increased dramatically this year, reaching $45,000. However, a threat looms in the form of BlackRock’s upcoming spot Bitcoin ETF product. Arthur Hayes warns that if these ETFs are successful, the death of BTC is imminent.
Hayes warns of Bitcoin’s potential decline
According to Arthur Hayes, if BlackRock buys all Bitcoins in circulation in its desire to accumulate as much wealth as possible, transactions will decrease. Additionally, miners will not be able to make a living by maintaining the network. Hayes claims that Bitcoin will die in this disaster scenario. He also predicts the emergence of a new cryptocurrency.
According to experts, the SEC will likely approve BlackRock’s spot Bitcoin ETF application as interest in the product grows. According to recently disclosed private conversations, the SEC could make a decision in early 2024. So the crypto world is at a crossroads, torn between the dangers foreseen by individuals who have spent a significant amount of time navigating its turbulent waters, and the promise of institutional investment.
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