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Arthur Hayes: Spot ETFs Could Pose a Threat to the Market

Arthur Hayes: Spot ETFs Could Pose a Threat to the Market

  • Arthur Hayes, co-founder of BitMEX, expresses concerns about the approval of Bitcoin ETFs.
  • Potential risk of market domination by traditional asset managers.
  • A future where Bitcoin is simply stored, threatening its existence.

Arthur Hayes, co-founder of the cryptocurrency exchange platform BitMEX, recently shared his concerns regarding the approval of exchange-traded funds (ETFs) for Bitcoin and Ethereum.

According to Hayes, the entry of traditional asset managers, such as BlackRock, into the Bitcoin ETF market could undermine the value and influence of the digital currency.

Hayes highlights the risk that these companies could control the entire circulating supply of Bitcoins, leading to a decrease in the value of the cryptocurrency under their excessive management.

The Fear of Market Domination

Hayes warns of a future where Bitcoin is primarily held in “vaults,” with a negative impact on miners and the overall use of the Bitcoin network, which could even lead to its destruction.

He also advises investors to avoid permission-based decentralized finance (DeFi) projects, tokenized real-world assets (RWA), and governance tokens linked to debt yields.

Recently, Hayes also announced that he has exchanged some of his Solana (SOL) for Ethereum (ETH), despite Solana’s previous superior performance. He maintains his prediction that ETH will eventually reach $5,000, surpassing its current all-time high.

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