Yeah, not good
Discussion
Oh wow. So, this is not positive news for the Bitcoin community? Do you believe that with the resilience of the ecosystem of Bitcoin that this hurdle can be overcome?
An ETF does not affect the way Bitcoin works or the properties it has when owned properly. What I’m saying is that in the long run this type of instrument will be used to suppress Bitcoin’s price. Also, nobody who owns this will be able to withdrawl the Bitcoin backing the shares of this instrument. So if this is the way you “own” Bitcoin, beware that in reality you own no Bitcoin but an IOU (a claim) on that Bitcoin.
An ETF has zero effect on the Bitcoin technology. It will be subject to market manipulation like everything else in the market. People who thought they were whales will in fact be fish.
However: the BTC futures ETF already has use cases for price suppression, so we're there already. Blackrock asking for a spot ETF is still a major improvement, and it's still an absolutely necessary stage of Bitcoin growth.
Before price suppression, big big bags will buy in (the biggest?). The halvings will still occur. Scarcity will increase. Bitcoin will become more popular and its use will likely increase. It will still be a tool for sovereignty and an alternative economic rail.
This is also an incremental step towards the ultimate test: nation-state attack. And every minute that passes, the network gets stronger.
As with many things Bitcoin and crypto in general, it's all about time horizon.