Viewpoint: Spot BTC ETFs may not possess all the same attributes as self-custodied BTC

2024-01-08 14:30:45

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ChainCatcher message, ChainLinkGod.eth stated on social media that spot BTC ETFs may not possess all the same attributes as self-custodied BTC, such as censorship resistance, permissionlessness, or counterparty risk.

However, if the goal is to gain exposure to non-sovereign currency in a secure, simple, and cost-effective manner through predictable monetary policy, and to serve unrelated assets, then ETFs are an ideal choice for many.

ETFs unlock institutional and retail capital that was previously unable to invest directly in BTC; pension funds, mutual funds, endowments, insurance companies, IRA retirement accounts, etc. Given their historical return profile, allocating 1-3% of a portfolio to a spot BTC ETF becomes a no-brainer, especially since financial advisors have reasons to recommend such allocations. The amount of passive investment flowing into TradFi tools cannot be overstated.

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