I don't believe that ETFs are inherently good or bad. They are what they are - a form of semi-insured custodial holding of Bitcoin presented as a tradable security.
Remember, the term "trustless" is often a misnomer (nothing is *completely trustless), and it's just one option on the spectrum of trust. While holding your own keys is always the most ideal approach, there are situations and mechanisms where someone might consider investing in a Bitcoin ETF (Canada, for instance, has had these for years).
In my opinion, the most significant drawback is that it doesn't encourage users to learn or practice self-custody. Newcomers frequently overlook the principle of "Not your keys, not your coins!!!!!" 😮💨
Time and time again, I encounter newbs who store their keys on an exchange, hold an ETF, or adopt even riskier practices, yet proudly claim, "I own Bitcoin" or "I invested in Bitcoin." It's always a challenge to correct this misperception while maintaining their enthusiasm.
Adopting a "buyer beware" mindset isn't the best approach. When people face significant losses, they may become disillusioned with Bitcoin, and this negative experience can ripple through their entire network!
ETFs have their merits and can serve a purpose, but it's our responsibility to educate newcomers about their distinctions and the importance of self-custody.
This is 100. Education in Bitcoin is everything.
Agree wholeheartedly.
Nothing is trustless - few.
Few
Those who want to custody will seek out information and do it those who don’t will use the ETF. Scams and fraud are afoot in this space. An ETF can protect people from that but they run the risk of completely getting rugged. One can hope that the ETF that holds BTC can verify on chain they have the BTC they claim to in custody. Plus with taproot I can imagine cryptographically linking each ETF share to a utxo to that person or fund who made that purchase.
Smart. Yes I totally agree. I would anticipate some EFT's underlying custodians will get robbed. It's inevitable. The question is - will the insurance/underwriters be able to or wanting to pay and cover the loss.
This is a huge issue IMO. Who is holding the keys and how cold is the freezer?
Yeah the industry needs to develop such products. But using bitcoin we can bring accountability and reality back to financial markets. Then BTC can shine as the Ark to escape the insanity we find ourselves in now
Yes. It is TRUTH
💯🙌
💯
This
Ty ty
But it will serve as a “gateway drug” for some people to eventually want to own the real corn.
True. It's exposure!
💯
Agreed!
I personally think the user shouldn't have to learn anything new
lol, bitconnect is more that speed!
Hey hey heyyyyyyy
Classic
Correct, in fact they entrench the existing system. There are tradeoffs, they will bring new people, who otherwise will not own bitcoin, and they will cause forced buying among institutional investors which will allow Bitcoin's NGU to get more attention and bring more people in. It is our job to teach those people so when they inevitably get rugged they know how to course correct. It's a long war. We are winning.
Totally! ETF's and a mixed bag and a 2 sided coin. Pun intended! IMO it shouldn't replace holding yourself... but is a good on ramp but total newbs and exposure.
Yes. Use sparingly and with assumption of risk. NYKNYC!!!!!!!!!
Not your keys?
Not your cheese!
Custody is trash
Yes. Self custody is best
Maybe ETFs will become a gateway drug to many.
Yes, hopefully
💯
Agree!
👀🤙
i dont think even educated bitcoiners understand why self custody is important. it is generally preached that its more secure because exchanges are shady and you could lose your funds. if the state would give assurance to ETF holders that if their funds are lost, even from a maxi bitcoiners viewpoint then, holding you own keys would be irrational because you arent insured if you lose them giving little rational reason to self custody.
so rather than worry about other people, might want to ponder what the novelty in the possession of bitcoin actually is.
Trust. You would be trusting "the state" to make good on their assurance.
Hard pass! Bitcoin is about self sovereignty as much as you can!
💯
Some people are more inclined to learn about bitcoin once they have financial exposure to bitcoin. And an ETF lets them get that financial exposure without a painful lesson in private key management. And once they learn about bitcoin, they will learn why self-custody and take the time to do it right.