Spot Bitcoin ETFs may take people further from self-custody and potentially create “millions of unbacked Bitcoin,” Trezor’s Josef Tětek believes.
Potential approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States will trigger fundamental problems related to the original vision of Bitcoin by the anonymous creator Satoshi Nakamoto, according to one analyst.
The concept of a spot Bitcoin ETF — an investment product that tracks the price of BTC by holding Bitcoin — conflicts with the idea of self-custody, according to Josef Tětek, a Bitcoin analyst at the hardware crypto wallet firm Trezor.
Unlike a Bitcoin ETF, self-custodial crypto storage solutions allow users to own Bitcoin by taking full responsibility for holding the private key — or the actual assets.
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Source: https://cointelegraph.com/news/spot-bitcoin-etf-millions-unbacked-btc