From Nasdaq Inc.:

Newly approved U.S. bitcoin ETFs have had popular launches, but they do not represent the true utility of Bitcoin. Investors don’t own the asset, missing out on financial ownership and sovereignty, which is what Bitcoin stands for. This is against the aim of Bitcoin’s inventor, Satoshi Nakamoto, 15 years ago.

Bitcoin ETFs replicate the outdated financial system and reintroduce counterparty risks, undermining the benefits of cryptocurrency that satisfies only 9% of Americans. They also lock investors within the U.S.-centered financial system, while crypto is permissionless and decentralized.

Bitcoin ETFs contradict the utility of crypto and are more expensive than secure self-custody, with fees ranging from 0.2% to 1.5%. They do not provide the private keys necessary for ownership and freedom in the world of crypto, which is crucial for corporate players and individuals.

Despite deviating from the end-goal of crypto, Bitcoin ETFs can serve Bitcoin by popularizing it and becoming gateways to crypto’s promised land of self-custody. They can also allow millions of people to gain exposure to Bitcoin and ultimately opt for true self-sovereignty, similar to how gold ETFs popularized gold’s private ownership.

The future of Bitcoin isn’t to become a speculative asset stored in ETFs, but a paradigm shift to re-write the rules of digital ownership and reshape value exchange, similar to how the internet transformed information exchange. Bitcoin ETFs are just a step in the broader journey to crypto-enabled financial freedom, a marathon, not a sprint.



Read more: A Bitcoin ETF Will Never Be Your Bitcoin