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While Satoshi Street eagerly awaits the launch of the primary Bitcoin ETF, Bitcoin maximalist Max Keiser has been elevating pink flags in opposition to the monetary instrument.

Will US Govt. Confiscate Bitcoins?

Bitcoin advocate Max Keiser has raised considerations, asserting that holders of BTC ETF (Exchange-Traded Fund) aren’t safeguarded in opposition to potential authorities seizure. Keiser alleges that the U.S. authorities has intentions to confiscate all Bitcoin held inside ETFs, citing nationwide safety pursuits because the driving drive behind such a transfer.

He additionally cited an excerpt from the Valkyrie Bitcoin Fund Form S1 Registration Statement {that a} US federal regulator can drive the Trust to liquidate the Bitcoin of “seize”, “impound”, and “restrict” entry to the Trust’s belongings.

Keiser argues that this could be very a lot in opposition to the decentralized nature of Bitcoin. Note that the spot BTC ETF points shares in opposition to the bodily Bitcoin purchases. However, it stays with the designated custodians, in contrast to the self-custody. Recently, SEC veteran additionally criticized the Bitcoin ETF applicants whereas referring to them as opportunists.

https://t.co/1rLrQVspus pic.twitter.com/po96XAHOuA

— Max Keiser (@maxkeiser) January 7, 2024

Bloomberg’s senior ETF strategist James Seyffart noted: “However outlandish the prospect of this may be in my opinion. It’s the first criticism of Bitcoin ETFs that I’ve seen from Max in recent days that I guess is technically true?”

However, Seyffart added that one ought to chorus from investing in BTC ETF if they’ve considerations about Govt. seizure or wish to hedge in opposition to the societal collapse.

Gold ETF vs. Bitcoin ETF

There’s been a dialogue about whether or not the BTC ETF would be capable to garner the identical enthusiasm that the Gold ETFs did. Also, whether or not they would offer the identical stage of security just like the Gold ETFs.

Bloomberg ETF strategist James Seyffart has weighed in on the comparability between gold ETFs and Bitcoin ETFs, asserting that gold ETFs face extra potential points, together with considerations about impurities and pretend bars. Seyffart emphasizes {that a} BTC ETF, particularly one with proof of reserves and clear practices equivalent to sharing addresses, could current fewer dangers in comparison with gold ETFs.

Honestly. However outlandish the prospect of this can be for my part. It’s the primary criticism of #Bitcoin ETFs that I’ve seen from max in current days that I assume is technically true? https://t.co/kyjQx9IGsM

— James Seyffart (@JSeyff) January 7, 2024

However, one consumer aka Bitcoin Lens on X platform countered James Seyffart stating: “Bitcoin ETFs are much more easier to confiscate by governments. A decree to turn over the keys to government. Done. When it is so easy to do, they will be more tempted to do”.

Responding to it, Seyffart stated: “I mean. Ofcourse. Same can be said about gold in vaults. It’s literally happened before. But nothing about the ETF is stopping you or anyone else for that matter from keeping your Bitcoin in cold storage. Thats my point”.

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Bhushan is a FinTech fanatic and holds aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and generally discover his culinary abilities.

The offered content material could embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.