Arthur Hayes, one of the most famous names in the cryptocurrency industry, thinks that the spot Bitcoin ETF may have negative consequences.
Maelstrom Fund founder Hayes worries that the interest in Bitcoin from institutional investors “could ultimately lead to something we don’t like.”
Asset managers like BlackRock “The state does whatever it says” Saying: Hayes, Larry Fink and others if it purchases a large portion of the freely traded Bitcoins in circulation He thinks Bitcoin will be negatively affected by this.
Bitcoins to be held in spot exchange traded funds (ETFs) can become passive Hayes warned: “Too much growth of the BlackRock ETF could actually kill Bitcoin because Bitcoins that cannot be moved will just be sitting there.” said.
Stating that Bitcoin’s structure is not suitable for traditional financial institutions and that it is the antithesis of statist currencies, he emphasizes that Bitcoin “exists for people” and worries that one or a few institutions hide most of Bitcoin’s supply.
Speaking to Blockworks, Hayes raised the following question:
“Okay, let the ETF come, no matter how high the price rises… but what will be the consequences of so much crypto coming into the hands of a single institution?”