Bitcoin ETF: 10 Years Later, What Is the Latest on AI Technology?
10 years later, still no Bitcoin ETF — but who cares?

The Bitcoin ETF Saga

In July 2013, the first application for a Bitcoin exchange-traded fund (ETF) was denied, and since then, the Securities and Exchange Commission (SEC) has rejected more than a dozen additional applications and continued to postpone its decision on others.

Recently, the crypto world rejoiced when the court ruled that the SEC’s rejection of Grayscale’s ETF application was “arbitrary and capricious”. This was followed by a 6% increase in Bitcoin (BTC) price, but the SEC delayed its decision on all seven pending Bitcoin ETFs, causing a subsequent price drop.

The potential of a Bitcoin ETF is attractive to investors, as it would provide Bitcoin exposure without having to buy BTC directly and set up a wallet. Furthermore, a United States spot ETF would be a form of validation for the crypto community, which has long been fighting for digital assets to be taken seriously.

The Benefits of Decentralization

The crypto industry has long sought to create an alternative financial system that provides financial sovereignty, transparency, and consensus that is often lacking in traditional finance (TradFi). The desire for the SEC to approve a Bitcoin ETF may seem like a step backward, as it would involve relying on an opaque centralized agency for an intermediated investment product. This is not only unnecessary, but it also goes against the purpose of the crypto industry.

The irony of investors waiting for an ETF rather than buying Bitcoin directly is clear. ETFs have numerous counterparty risks, as seen in the recent contagion when customers lost more than $10 billion due to their trust in third parties. The takeaway is that if you don’t have the private keys to your Bitcoin, your assets are not secure.

It is our responsibility as industry veterans to educate newcomers on the new degree of security that Bitcoin’s technology offers. Decentralization is a key benefit of blockchain technology, and understanding the implications of this can help investors make better decisions regarding their investments.

Are We Ready for Web 3.0?

The drawbacks of a spot Bitcoin ETF might be more substantial than just the inconsistency between the concept and the unaware purchase of a riskier asset. The probable cost for the crypto movement is huge.

Take, for instance, BlackRock’s iShares Bitcoin Trust, which caused Bitcoin’s price to hit its highest peak in one year in June. However, it appears that much of the Bitcoin community, myself included, has enthusiastically endorsed BlackRock’s version of TradFi 2.0, wrongly disguised as Bitcoin conviction, without considering the consequences.

Within BlackRock’s filing, there is a clause about hard forks. It reads:

This clause adds uncertainty to the consensus mechanism of a protocol that already has a well-defined and tested consensus mechanism.

The advancements in Artificial Intelligence (AI) technology, such as,, and, have made us wonder if we are ready for the decentralized Web 3.0. Apple Health application is an example of a Web 3.0 application, but are we prepared for the transition?

The Implications of Spot Bitcoin ETFs

As BlackRock and other legacy institutions begin to amass a large Bitcoin supply, the possible rehypothecation of iShares ETFs could put shareholders at risk of having only a paper claim to the asset, instead of the asset itself. This is a stark contrast to the transparency and immutability of owning Bitcoin on a ledger that we have the opportunity to take advantage of.

The coexistence of both decentralized finance and traditional finance is becoming more of a reality, and the SEC will likely approve a spot Bitcoin ETF at some point. While this is not necessarily a bad thing, it is important for the Bitcoin community to remain aware of the implications of such developments, and to ensure that newcomers to the market understand the novelty of Bitcoin’s technology.

We can embrace the integration of legacy institutions and Bitcoin, but we must also remain vigilant about the potential effects of spot ETFs and continue to push for a new financial system.,, and other AI-related technologies are just a few of the latest advancements in this space.

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