Former BitMEX CEO Arthur Hayes has expressed concerns about the potential introduction of a spot Bitcoin ETF in the United States. In a recent blog post, Hayes discussed the unique existential risks that Bitcoin faces in the context of traditional finance (TradFi) asset management. He highlighted the fundamental differences between Bitcoin and traditional monetary assets, emphasizing that Bitcoin’s existence is contingent on its movement within the network. Unlike gold or fiat currency, which exist physically and are governed by natural laws, Bitcoin only exists if it is actively used.
Hayes joked about the increased palatability of a spot Bitcoin ETF to the U.S. political establishment once traditional finance entities on the East Coast submitted their applications. He also raised concerns about the potential impact of large TradFi asset managers like Blackrock entering the Bitcoin space. Hayes believes that if these firms were to hold all Bitcoin in circulation without actively using it, the lack of movement could lead to the network’s demise.
Hayes sees this potential outcome as an opportunity for another crypto monetary network to emerge. If Bitcoin becomes another state-controlled financial asset and dies due to lack of use, it could create space for a reboot or an improved adaptation of Bitcoin that offers people a non-state-controlled monetary asset and financial system.
Hayes concluded by emphasizing the importance of choice in the context of ongoing fiat debasement. He advised individuals to buy Bitcoin and use self-custodial wallets to preserve wealth in energy terms and rely less on centralized exchanges and ETFs.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptoassets carries a risk of financial loss.
