Nick Szabo: Bitcoin ETF ‘Might Cause More Problems Than It’s Worth’
Nick Szabo says he is “not lobbying” for a Bitcoin exchange-traded fund (ETF) in fresh criticism of the phenomenon which many commentators claim would significantly boost prices.
In a series of tweets August 12, the veteran cryptographer appeared risk-averse about an ETF gaining regulatory approval.
“I for one am not lobbying for an ETF or for Wall Street-managed money in general. It might cause more problems than it’s worth,” he wrote.
The recent sell-off by dumb money has or soon will deprecate many opinionated know-nothings in this space. We don’t need new ones to take their place.
I for one am not lobbying for an ETF or for Wall Street-managed money in general. It might cause more problems than it's worth. The recent sell-off by dumb money has or soon will deprecate many opinionated know-nothings in this space. We don't need new ones to take their place. https://t.co/s7OxZt9IrJ
— Nick Szabo⚡️ (@NickSzabo4) August 12, 2018
Wall Street ‘Is Not Bitcoin’s Friend’
Szabo’s words come amid an increasingly sage climate regarding the real benefit of an ETF to Bitcoin’s march to mainstream acceptance.
Having previously championed US regulators greenlighting the nine applications currently under consideration, some industry figures have since suggested an ETF would not be a magic bullet for Bitcoin.
“…Hopefully [HODLers]… will realize Wall St is not [Bitcoin’s] friend,” former Morgan Stanley senior executive Caitlin Long commented about the situation Sunday, while Szabo referenced Cenacle Capital managing director Bill Ulivieri, who said he was “losing respect for the Bitcoin community” over its ETF support.
“Everyone wants an ETF but without the backoffice / hard to borrow/ fail to deliver consequences,” he added. “[It’s] like they want physical stock certificates on [Bitcoin…].”
The recent announcement by New York Stock Exchange owner Intercontinental Exchange (ICE) it would build and open a digital asset platform by November meanwhile led to further considerations.
As Bitcoinist reported, Brian Kelly, the CNBC commentator and investment manager, claimed that the appearance of ICE’s Bakkt platform would “significantly help the chances” of an ETF, while social media commentator even suggested it would make an ETF “completely redundant.”
So far, regulators have opted to delay judgment on new ETF applications after refusing Tyler and Cameron Winklevoss’ submission for a second time last month.
What do you think about the benefits of a Bitcoin ETF? Let us know in the comments below!
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