The article by Agne Linge critiques the rise of crypto exchange-traded funds (ETFs) in the U.S., pointing out that despite the over $40 billion in net inflows signifying growing investor interest, this trend is pulling crypto away from its core decentralized principles like self-custody and borderless value transfer. While crypto ETFs may simplify access for new investors accustomed to traditional finance, their cash-based model introduces risks and distances investors from actual ownership of digital assets. Advocates argue that ETFs offer regulatory clarity, but Linge warns that they also trap crypto within a centralized framework. Key criticisms include the loss of direct control, governance participation, and exposure to additional fees and risks typically seen in traditional finance. With significant holdings by institutional players potentially impacting coin ecosystems, the movement towards ETFs may signify a regression rather than progress in the realm of decentralized finance. Linge concludes that while ETFs may seem convenient, they compromise the foundational ethos of crypto, which is centered around individual empowerment and financial freedom.

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