TL;DR

• Here're three common arguments against a spot Bitcoin ETF:

• 1. It puts a whole bunch of Bitcoin in the care of a very small amount of people, which gives them control over it.

• 2. Some Bitcoin maxis fear that the government will try and ban individual ownership of BTC, and force investors to buy it only via an ETF.

• 3. Some folks are pointing to the idea that an ETF approval has already been priced into Bitcoin.

Full Story

There's a lot of excitement surrounding a potential spot Bitcoin ETF (aka a way to buy Bitcoin on the stock market)...

But what're the potential downside risks?

We found a few common talking points from dissenting voices, and collected them here for you, so you can form a balanced opinion (if the feeling takes you).

Here're three common arguments against a spot Bitcoin ETF:

1. It puts a whole bunch of Bitcoin in the care of a very small amount of people, which gives them control over it.
   
   Sure, a wide range of people will buy into these Bitcoin ETFs - but they'll own the Bitcoin by proxy, meaning it will be the fund that actually takes custody of the Bitcoin.
   
   Our two cents: safe third party custody has to become an option if Bitcoin is going to proliferate. Not everyone is going to feel comfortable holding millions/billions of dollars on a ​hardware wallet​.

2. Some Bitcoin maxis fear that the government will try and ban individual ownership of BTC, and force investors to buy it only via an ETF.
   
   Our two cents: Feels like a stretch, but crazier things have happened.

3. Some folks are pointing to the idea that an ETF approval has already been priced into Bitcoin.
   
   Meaning that if/when an ETF gets approved and goes live, it won't move the price all that much - meaning we're all getting excited over nothing.
   
   Our two cents: in the short term, this is probably true. In the long term (12 months +), not so much.

All things considered, we're still excited at the potential of a spot Bitcoin ETF.