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MrDecentralize
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2024-12-30 17:08:37

MrDecentralize on Nostr: 🟧 “Why would institutional investors want the hassle of self-custody?” they ...

🟧 “Why would institutional investors want the hassle of self-custody?” they asked. But what if a Spot #Bitcoin ETF made it possible?

A bold shift is coming that could unite Wall Street and Bitcoin’s decentralized ethos. Here’s what you need to know 👇

🟧 Bitcoin ETFs vs. Bitcoin’s ethos

For years, Spot Bitcoin ETFs faced criticism. Critics said they betrayed Bitcoin’s principle of self-sovereignty.

Institutional investors wanted exposure—without the headaches of private keys.

ETFs were a gateway, but there was a catch: no self-custody.

🟧 The problem

Traditional Bitcoin ETFs lock investors into the financial system.

No direct access to BTC. Far removed from Bitcoin’s ethos of individual control.

This led to skepticism from Bitcoin purists and a hesitant embrace from institutions.

🟧 A game-changing proposal

Starting in 2025, SEC Commissioner Hester Peirce is hinting at a bold shift—Spot Bitcoin ETFs may allow in-kind redemptions.

Translation? Investors could withdraw actual Bitcoin from their ETFs into private wallets.

Self-custody would become a reality—even for institutional players.

🟧 Why this matters

This isn’t just a tweak; it’s a seismic shift.

For the first time, ETFs could:

|Align institutional finance with Bitcoin’s decentralized philosophy.

|Empower investors to truly own their Bitcoin.

|Build trust by bridging Wall Street with Bitcoin’s core advocates.

🟧 The ripple effect

In-kind redemptions could:

|Attract skeptics who value self-sovereignty.

|Encourage institutions to engage directly with Bitcoin’s ecosystem.

|Set a precedent for digital asset ownership across financial products.

🟧 Big picture

Bitcoin started as a rebellion against centralized finance.

A Spot Bitcoin ETF with self-custody bridges two worlds—without compromising Bitcoin’s ideals.

This could be the start of a new era: Institutional adoption and decentralization working hand in hand.

🟧 Final thought

Self-custody isn’t a hassle—it’s freedom.

With this shift, Bitcoin ETFs could empower investors like never before.

BitcoinFi —the future is permisionless & decentralized 🚀

https://finance.yahoo.com/news/sec-commissioner-hester-peirce-teases-151709532.html
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