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Crypto: Arthur Hayes Concerned About BlackRock's Potential Impact on Bitcoin (BTC)

Wed 11 Oct 2023 ▪ 3 min read ▪ by Luc Jose A.
Getting informed ▪ Invest

Fervent Bitcoin (BTC) advocate, Arthur Hayes, has predicted that the asset will see its price skyrocket to reach a valuation of one million dollars. This could happen if the company BlackRock obtains the Bitcoin ETF they have filed for. However, this perspective, although initially interesting for the crypto industry, does not reassure the investor.

A Bitcoin coin with the word 'ETF'

Arthur Hayes’ Concerns About BlackRock’s Influence on Crypto

What would happen to the crypto market if an asset manager like BlackRock were to obtain a Bitcoin ETF? Beyond the positive prospect it represents for the adoption of the flagship cryptocurrency, the idea raises questions for some experts, like Arthur Hayes.

He recently shared his thoughts on this topic in an interview. On this occasion, he warned that BlackRock’s involvement could fundamentally transform the ecosystem around the leading cryptocurrency.

Firstly, Arthur Hayes expressed his enthusiasm for the prospect of a Bitcoin ETF, given the significant influx of capital that could flood the crypto market.

But this possibility has downsides as well. The investor also expressed his concerns about the influence it could have on the characteristics that essentially make Bitcoin and cryptocurrencies relevant.

Are BTC’s Fundamental Principles at Risk with the Approval of an ETF?

What worries Arthur Hayes is the idea that the support of BlackRock and asset managers would lead to the alteration of Bitcoin’s fundamental principles. He fears that these traditional financial giants may compromise the privacy, immutability, resistance to censorship, and decentralization that are cherished in the crypto industry.

This question is highly relevant and reflects a broader concern within the crypto community. It’s a fear about the impact of institutional involvement on the ethics and fundamental characteristics of cryptocurrencies.

It’s worth noting that at the end of September, the SEC postponed its decision regarding various cash-settled Bitcoin ETF applications, including BlackRock’s. The US financial regulator is expected to rule on several of these applications early next year.

One thing is certain: the outcome of these decisions could significantly influence the future of Bitcoin. Experts agree that the broader crypto market is also likely to be affected.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.