Despite the hype around spot bitcoin ETFs and bitcoin futures ETFs, no one is discussing the elephant in the room.
These funds appear to be at the forefront of investing, but in reality they charge fees and hinder ownership of bitcoin {{BTC}} while Wall Street addresses the threat of decentralized finance (DeFi).
Before this bull run, 32% of Americans used DeFi platforms, according to a research report. One-quarter of China (26%) and India (25%) also utilize them. Given the growth in total value locked (TVL) and DeFi trade volumes since January, those numbers may be higher.
A spot bitcoin ETF has long been questioned by crypto industry veterans and others, who believe that it goes against the core reason Satoshi Nakamoto (not Craig Wright) penned the Bitcoin white paper and launched the first cryptocurrency. However, most people forget a fundamental fact: Wall Street needs bitcoin more than bitcoin needs Wall Street.
Spot bitcoin ETFs are an acknowledgement by large financial firms that they fear the impact digital currencies could have on their business models,
similar to how nation-states fear losing power and control to non-sovereign currencies in a global economy. They are rapidly adopting central bank digital currencies (CBDCs) in response to this growing threat.
Previous financial firms “tried to kill crypto and failed.” JPMorgan CEO Jamie Dimon recently compared bitcoin to smoking, saying it's full of fraud and he'd never buy it but would protect your right to do so.
He projected bitcoin will hit $1 million. That's a big change from earlier this year, when he compared it to a pet rock and testified on Capitol Hill that he'd “close it down” in government.
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