Bitcoin ETFs Are Not Your Friend

Original author: The Smart Ape (@the_smart_ape)

Original translation: Peisen, BlockBeats

Editor's note:

After the launch of Bitcoin ETF, the crypto market ushered in an ETF bull, followed by a 180-degree reversal of regulatory attitude towards Ethereum ETF and approval of 19b-4s documents, and VanEck also took this opportunity to submit the first Solana ETF application. The market cheered the launch of ETFs, but at the same time there were also many voices of concern. @the_smart_ape believed that ETFs actually destroyed the crypto ecosystem. BlockBeats translated the original text as follows:

 

Don't be silly!

 

Do you think Bitcoin, Ethereum, and Solana ETFs are good for the ecosystem? You are wrong! They are nothing more than Trojan horses that make something that is otherwise uncontrollable controllable. Here’s what you need to know

 

 

I despair when I see everyone rejoicing over the approval of ETFs for Bitcoin, Ethereum, etc.

 

Do you find it strange that big institutions are suddenly interested in cryptocurrencies? Don’t be a lamb to the slaughter, you absolutely need to understand what is going on.

 

 

In the past, BlackRock was a big critic of Bitcoin.

 

Larry Fink said, “Bitcoin just shows you how big the demand for money laundering is in the world. That’s all.” Then all of a sudden, magically, they realize this is a revolutionary technology and release a spot ETF!

 

Don’t you find it strange?

 

But as you can see, BlackRock is not only interested in Bitcoin, they are also interested in many ecosystem projects. They have a public plan for global tokenization, which means they want to tokenize all the assets in the world (such as real estate, energy, agriculture, etc.).

 

You might say, so what? It's good for us! But actually, it's not...

 

Let’s start with Bitcoin! Everyone knows Bitcoin is an impassable barrier, and BlackRock understands that the only way to undermine Bitcoin is to attack it from the inside.

 

 

ETFs turn Bitcoin into a speculative product or a store of value! This deviates from Satoshi’s original utility, which was a peer-to-peer payment system.

 

For those who think this is impossible because of high transaction fees or long verification times, there are L2 solutions on Bitcoin that can solve this problem! The Lightning Network is a great example.

 

 

The lack of BTC liquidity could prevent Bitcoin from being used in L2, giving it more utility and more freedom. Fortunately, for now, most Bitcoins are held by individuals, but this share is bound to decrease over time.

 

 

As you can see, the ETF holds 4% of the total BTC, which may seem low, but note that this is only what they have accumulated over a few months. Moreover, 4% is what is needed to make the Lightning Network a payment network that can rival Visa and Mastercard.

 

 

ETFs make Bitcoin more manipulable.

 

Did you know that there is a clause that allows Bitcoin ETFs to be liquidated at any time? All ETFs have the same clause. For any restrictions (such as regulation), all Bitcoin can be liquidated and ETF holders can be reimbursed in USD. Imagine the massive liquidations this could cause.

 

 

But this is not the only way to manipulate prices. BlackRock chose JPMorgan as one of its counterparties for the Spot Bitcoin ETF. It is the largest bank in the United States in terms of assets, but it is not without financial scandals.

 

 

On December 6, 2023, JPMorgan CEO Jamie Dimon said that if he were the government, he would "shut down" Bitcoin and cryptocurrencies. 20 days later, they were named as counterparties to the Bitcoin ETF by BlackRock.

 

Do you see it more clearly now?

 

Anti-Bitcoin but not anti-blockchain. Last October they launched a private blockchain called Tokenized Collateral Network (TCN) that allows the use of assets as collateral. Guess who was involved in one of the biggest transactions on this network?

 

BlackRock, of course!

 

Also, JPMorgan was accused of manipulating prices using a gold ETF and they had to pay a fine of more than $1 billion. They manipulated the gold price, do you really think they won’t manipulate the Bitcoin price?

 

The medium to long term goal is to create a system where everything will be tokenized and controlled by the financial elite. I’m talking about forests, trees, rivers, etc… All this following the public plans set for 2030 in the UN Sustainable Development Goals.

 

These are the 17 goals set by the United Nations, which include:

 

• Digital development with integrated wallets

• Development of health cards

• Creation of digital currencies

• Smart city design (15-minute cities)

• Development of blockchain technology

 

BlackRock shares the same vision as the United Nations and seems to be moving in this direction. The first question you should ask yourself is, what is my goal?

 

For me, it is freedom and independence of payment systems, but also freedom and independence of technology. Blockchain, introduced with Bitcoin, allows all this.

 

But BlackRock, governments, etc. have the opposite goals.

 

Do they want your freedom? Your independence? Of course not!

 

In this case, don't make things easy, hold on to your Bitcoins, and be more vigilant about future products they announce.