Disadvantages of Bitcoin ETF

[pawel7777]

Bitcoin ETF goes against two of the beauty's of Bitcoin, Decentralization and privacy. Yes it has brought about some element of  legality in  Bitcoin in the eyes of the public or i would say quicken the process but i would ask is the short to mid term benefit worth the possible deficit in the long run?

Unpopular opinion, but for the non-tech savvy investors who are only in Bitcoin for the profits - it's better to hold it on regulated and insured centralised exchanges or via ETFs. It takes away the risk of them losing btc due to hacks, losing private keys or messing something up.
In some cases, holding ETFs could make capital gains tax-free.

But for those who are looking beyond just making a quick buck - yup we should avoid trusting any 3rd parties as far as possible.

[Baofeng]

Bitcoin ETF goes against two of the beauty's of Bitcoin, Decentralization and privacy. Yes it has brought about some element of  legality in  Bitcoin in the eyes of the public or i would say quicken the process but i would ask is the short to mid term benefit worth the possible deficit in the long run?

Unpopular opinion, but for the non-tech savvy investors who are only in Bitcoin for the profits - it's better to hold it on regulated and insured centralised exchanges or via ETFs. It takes away the risk of them losing btc due to hacks, losing private keys or messing something up.
In some cases, holding ETFs could make capital gains tax-free.

But for those who are looking beyond just making a quick buck - yup we should avoid trusting any 3rd parties as far as possible.

Yep, hard lessons for us, specially those who lost their Bitcoin thru hacks or putting it on a 3rd party and then suddenly they rug-pulled. And so with that, it's better to have control of our coins, and not rely to 3rd parties to hold that for us.

Although as far as I know those companies that will HODL will have it in insurance but it's not going to be 100%, just a partial amount. So for tech savvy like us, then why not just HODL it ourselves and secure and learn how to practice and protect it by ourselves.

[Stompix]

But for those who are looking beyond just making a quick buck - yup we should avoid trusting any 3rd parties as far as possible.

Who are the guys you're taking about? 
They went extinct or at least extinct in the wild and unable to reproduce during the '19 bull run!

The whole thing of "not your keys not your coins" which probably I'm going to take to the grave is  just a saying now, everyone claps , agrees, says it's so much better and then 99% of them park their coins at Binance!
And before anyone says about the "dwindling" coins in exchange's cold wallets, nobody has yet been able to tag alll of neither Coinbase Bitgo accounts, nor MicroStrategy wallets nor the coins that Salvador supposedly has!

It takes away the risk of them losing btc due to hacks, losing private keys or messing something up.

Cough cough... mattress cash vs banks! 

I don't see a disadvantage of having a management fee because you will only pay it yearly. It just only a little amount of funds compare to your potential annual profit.

Paying something for a thing you could do yourself just for the promise that your coins actual exist is not a drawback?

[Hamza2424]

You missed the most important one:
Not your keys not your coins! Promises on paper are not keys either!

Ahh, From the bottom of my heart thanks sir for mentioning this key point...

More on it, I was not expecting anything from ETF just a huge flow of money in the market and bullish market momentum, there are some other decent ways available to fetch bitcoin more securely and conveniently. Now, it seems like ETF is just a bubble market will follow its nature throughout the entire journey.

[Gurujebs]

Management Fees: ETFs typically charge annual management fees, reducing the profits for those holding shares in a Bitcoin ETF compared to direct trading on cryptocurrency exchanges.

They know what they are getting into. I'm sure they have thought about it but I think I will rather register my account on centralized exchange and buy real Bitcoin with less or insignificant fees than pay yearly fees that will drain my pocket, it doesn't worth it because you aren't even holding real Bitcoin.

Trading Hours: Bitcoin ETFs are only available on the stock market and depend on stock market opening/closing hours. This limits the flexibility of trading for investors compared to the cryptocurrency market.

Of all the features, this is the one I hate the most. I mean, did they thought of how to sell these ETF when there is an emergency or when the price is falling off? You will have to wait during trading hours before you can sell what you invested with your own money.

ETF Price Discrepancy: The price of a Bitcoin ETF may deviate from the actual value of Bitcoin due to the imbalance between supply and demand, potentially leading to inaccurate buying/selling prices.

This is just like Gbtc market, even in there market differences the demand and supply will close that gap any time the market open. It's normal for the difference with a gap but it will close. However, there were times Traditional market became speculative tool for Bitcoin price which is not that good thing to allow, it's makes bitcoin looks too centralized.

[Rubel007]

Bitcoin ETF is an open platform for stock traders only. There, trading is conducted according to various central rules. Even though Bitcoin is decentralised, those who buy Bitcoin from the ETF market will not be able to keep their identity anonymous. That is we can say that they are centralised. Moreover, ETF investors never consider holding Bitcoin. They sell bitcoins for a small profit. So I think Bitcoin ETF will not provide any good news for Bitcoin. Rather, it will benefit some whale investors.

Those who thought the approval of Bitcoin ETF as a big issue for Bitcoin price rise can now understand these issues easily. In fact, how beneficial Bitcoin ETF can be to Bitcoin's bullish movement. We have seen how the Bitcoin price has dropped since the approval of the Bitcoin ETF.

[taufik123]

-snip-
More on it, I was not expecting anything from ETF just a huge flow of money in the market and bullish market momentum, there are some other decent ways available to fetch bitcoin more securely and conveniently. Now, it seems like ETF is just a bubble market will follow its nature throughout the entire journey.

Once the ETF bubble market is over there will be negative impacts as well.
See how after the ETF approves, the price of Bitcoin starts to fall and this tends to experience a fairly deep correction.
Also supported by some FUD and other negative news.

ETFs increase the price of Bitcoin in the beginning to help the price go higher.
It's like the manipulation done by Whales with a lot of money and maybe it's unlimited in number.

[de_prof]

Once the ETF bubble market is over there will be negative impacts as well.
See how after the ETF approves, the price of Bitcoin starts to fall and this tends to experience a fairly deep correction.
Also supported by some FUD and other negative news.

ETFs increase the price of Bitcoin in the beginning to help the price go higher.
It's like the manipulation done by Whales with a lot of money and maybe it's unlimited in number.

Yeah , I see after ETF bitcoin , the price went down but It cause of whales sold their BTC in big amount.
Bitcoin is recovering again after that. I still have confidence, ETF will make bitcoin price goes up.

Manipulation will always be there , So we only see and take the advantage of those moments.

[bayu7adi]

What you mentioned is related to investment and money, while Satoshi created Bitcoin as a symbol of freedom in peer-to-peer transactions. Prioritizing privacy addresses the current global issue where governments are overly intrusive, monitoring their citizens by implementing various KYC regulations and tracking all of their transactions.

Bitcoin has never been affiliated with governments, making it an independent currency that values its users' privacy. Bitcoin ETFs would only undermine Satoshi's intended function. It's certain that some people like Bitcoin ETFs and some hate them. I hope not all Bitcoins circulate in Wall Street; it would confine Bitcoin there, and users wouldn't be free to use Bitcoin anymore.

For someone using Bitcoin for daily transactions, Bitcoin ETFs wouldn't have any impact except on the price.

[retreat]

So far I haven't found any significant advantages in Bitcoin ETFs compared to real Bitcoin. In fact, I'm not at all interested in what ETFs have to offer, because why would you trade something that doesn't even exist in the first place? I mean the Bitcoin ETF was launched without any underlying assets and the Bitcoin ETF provider only wanted to buy a few thousand Bitcoins for the 21 million shares they launched. It looks like people are fooling. So compared to investing in something like that, it's better to invest in the original asset and you can manage the asset more freely and safely directly from your wallet.

[tranthidung]

Once the ETF bubble market is over there will be negative impacts as well.
See how after the ETF approves, the price of Bitcoin starts to fall and this tends to experience a fairly deep correction.
Also supported by some FUD and other negative news.

FOMO makes most of people lost money and it's not good.

Bitcoin Spot ETFs are helpful for Bitcoin market in long term and if a person can invest in bitcoin long enough, like 4 to 6 years, it will be great to at least avoid risk of loss because of bear market.

If is historically proven by Bitcoin ROI table, chart and HODL camp chart.

• https://hodl.camp/
• Bitcoin & Traditional Assets ROI (vs USD)
• Bitcoin ROI chart

[therozaq]

FOMO makes most of people lost money and it's not good.

Bitcoin Spot ETFs are helpful for Bitcoin market in long term and if a person can invest in bitcoin long enough, like 4 to 6 years, it will be great to at least avoid risk of loss because of bear market.
~

absolutely yes, FOMO is not good , we should do research before invest and also when have decision to sell.
As you said, ETF bitcoin is usefull many investors will start to invest in bitcoin use ETF bitcoin program.
Hold for long term investment is always good , if we have big fund and free.

[taufik123]

FOMO makes most of people lost money and it's not good.

Bitcoin Spot ETFs are helpful for Bitcoin market in long term and if a person can invest in bitcoin long enough, like 4 to 6 years, it will be great to at least avoid risk of loss because of bear market.

And it hurts a lot because buying too high and suddenly crashes.
There are many FOMO practices that are done that trap beginners to enter,
Even though it's just a trap that has been prepared.

4 to 6 years is quite an ideal time for an investment, especially Bitcoin which has been known how to hold from the beginning until now which provides very many benefits.
It also needs support to do DCA when the market does crash, it gives an advantage to the number of coins that will be more.

[TomPluz]

Everything that has an advantage usually has disadvantages. As far as I'm concerned, I don't quite like the BTC EFT because it's not a decentralized system. Investors on the ETF would likely have their identity known, which IMO is not really safe. A question I asked myself one day regarding these was: what if the SEC decides to bring up any new rules against known Bitcoin holders due to this ETF? The future is quite unpredictable, and anything could happen. It's more safe to invest in Bitcoin and hold it in your own custodial wallet because, like the first comment said, there is one great rule of investing in Bitcoin, which is not your key, not your coin.

As far experts on the blockchain and cryptocurrency can be concerned, the biggest disadvantage and fear of BTC-ETF is the centralization involved, away from decentralization which is the cornerstone of Bitcoin. I am not expert with anything but I think I can sense this whole thing from afar. What happened to gold can also happened to BTC. Certainly, there is a chance that volatility can be controlled to a certain level but that can also mean that growth can be manipulated. How ETF can really be affecting Bitcoin in many ways remains to be seen in the years following 2024. Let's hope am wrong, though.

[elbans89]

You missed the most important one:
Not your keys not your coins! Promises on paper are not keys either!

Ahh, From the bottom of my heart thanks sir for mentioning this key point...

More on it, I was not expecting anything from ETF just a huge flow of money in the market and bullish market momentum, there are some other decent ways available to fetch bitcoin more securely and conveniently. Now, it seems like ETF is just a bubble market will follow its nature throughout the entire journey.

TBH I don't expect too much about ETF bitcoin.. Although many people have own opinions about this, they said ETF bitcoin will have good impact. But we should see the reality,  After  ETF bitcoin approved until now I see bitcoin performance still recover and didn't touch the price before ETF bitcoin approved.