- BlackRock is bidding to launch a spot Bitcoin ETF.
- While the news has sparked some excitement, some, like Cardano’s Charles Hoskinson, argue it should not be celebrated.
- According to the Cardano founder, supporters of the application are no friends of the crypto community.
The world’s largest asset manager, BlackRock, has sparked buzz and excitement within the crypto community over the last 24 hours by revealing plans to launch a spot Bitcoin exchange-traded fund (ETF) in the United States.
Many have tried before and failed. But pundits may like BlackRock’s odds due to the firm’s extensive political influence. Nonetheless, not all are enthused by the development, including Cardano Founder Charles Hoskinson.
The Input-Output chief took a swipe at members of the Bitcoin Community actively defending BlackRock’s proposed ETF product.
A Question of Ethics?
In a tweet on Thursday, June 15, Hoskinson questioned the “ethics, mental state, and greed” of Bitcoiners actively supporting the BlackRock Bitcoin ETF proposal.
The Cardano founder’s harangue notably did not end there, as he argued that supporters of the newly proposed Bitcoin ETF were not true supporters of the blockchain industry or decentralization.
"The group of people cheering on the US government to destroy all their competitors, who lie repeatedly about technology, who call us all criminals, and have no strategy for identity, DeFi, or true decentralization are not our friends," Hoskinson asserted in response to a critic.
While BlackRock’s push for a spot Bitcoin product is largely viewed as a positive for the institutional adoption of the cryptocurrency, others have suggested that approval would be a slap on the face of early adopters and innovators who the United States Securities and Exchange Commission has so far turned away.
At the same time, others argue that it would be akin to the SEC picking winners and losers, against its mandate and against the ethos of a free market and competition upon which Bitcoin was developed.
So far, the markets regulator has denied core crypto entrepreneurs like Tyler and Cameron Winklevoss, and Grayscale, and asset managers like Ark Invest and Fidelity, alleging that applications failed to offer required protections against fraud and market manipulation.
With the SEC denying all others before, House Financial Committee Chair Patrick McHenry noted that he would be watching how the SEC handles BlackRock’s application.
The SEC is expected to decide on the ETF application by February 2024.
On the Flipside
- Grayscale has taken the SEC to court for denying its Bitcoin spot ETF application.
- The SEC has approved several Bitcoin Futures ETF products.
Why This Matters
Hoskinson’s statements underscore the fears of many crypto enthusiasts who believe regulators are clamping down on the industry to allow traditional finance giants to take over.
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