Famous Bitcoin Maximalist Expresses Concerns About Spot BTC ETFs in the U.S.!

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• As Wall Street eagerly awaits the launch of the first Bitcoin ETF, Bitcoin maximalist Max Keiser raises red flags against the financial instrument.
• Keiser claims that the U.S. government intends to seize all Bitcoin within ETFs, and the motivation behind this move is said to be national security interests.
• Seyffart added that those with concerns about government seizures or those looking to hedge against societal collapse should avoid investing in BTC ETF.

Bitcoin maximalist Max Keiser has expressed his concerns about spot Bitcoin ETFs to be launched in the U.S.!

Bitcoin Maximalist Talks About ETFs

As Wall Street eagerly awaits the launch of the first Bitcoin ETF, Bitcoin maximalist Max Keiser raises red flags against the financial instrument. Bitcoin advocate Max Keiser voiced his concerns by claiming that BTC ETF (Exchange Traded Fund) holders are not protected against potential government seizures.

Keiser claims that the U.S. government intends to seize all Bitcoin within ETFs, and the motivation behind this move is said to be national security interests. He also quoted from the Valkyrie Bitcoin Fund Form S1 Registration Statement, stating that a U.S. federal regulator could force the Fund to “seize,” “confiscate,” and “restrict access” to the Bitcoins.

Keiser argues that this would be highly contradictory to the decentralized nature of Bitcoin. It should be noted that a spot BTC ETF issues shares in exchange for physical Bitcoin purchases. However, it remains in custody with designated custodians instead of unique storage. Recently, a former SEC official criticized Bitcoin ETF applicants, calling them opportunistic.

Bloomberg’s senior ETF strategist James Seyffart stated, “How exaggerated the possibility is, in my opinion, Max’s recent criticism of Bitcoin ETFs, could it be technically correct?” However, Seyffart added that those with concerns about government seizures or those looking to hedge against societal collapse should avoid investing in BTC ETF.

Gold ETF vs Bitcoin ETF

There is a debate about whether BTC ETF can garner as much attention as gold ETFs and provide the same level of security. Bloomberg ETF strategist James Seyffart, including others, joined the discussion comparing BTC ETFs to gold ETFs, suggesting that a transparent BTC ETF with practices such as reserve proof and address sharing could offer less risk compared to gold ETFs.

However, a user named Bitcoin Lens on the X platform countered James Seyffart, saying, “Bitcoin ETFs are much easier to seize by governments. The decision to hand over the keys to the government. Okay. When it’s that easy, they’ll be more inclined to do it.” In response, Seyffart said, “Yes. The same could be said for gold in vaults. It has really happened before. But nothing about ETF prevents you from keeping your Bitcoin in cold storage. That’s my point.”