The crypto world eagerly awaits the SEC’s decision on America’s first spot Bitcoin ETF while Bitcoin maximalist Max Keiser issues a stark warning against the financial instrument.
“US Government Could Seize Bitcoins in Spot Bitcoin ETFs”
Prominent Bitcoin advocate Max Keiser suggests that investors in spot Bitcoin ETFs might not have their assets secure, claiming the US government could seize the BTC held within these funds. Keiser points to national security interests as the driving force behind such potential actions.
To support his claim, Keiser refers to a statement in the S1 Registration Statement for the Valkyrie Bitcoin Fund submitted to the SEC, which indicates that a US federal regulator could force the liquidation of Bitcoin by seizing and restricting access to the assets in the trust. He adds that this would be contrary to the decentralized nature of the leading cryptocurrency.
It’s important to note that Spot Bitcoin ETFs issue shares in exchange for physical Bitcoin purchases. Unlike self-custody, designated custodial institutions are used for ETFs.
Bloomberg’s senior ETF strategist James Seyffart acknowledges the plausibility of Keiser’s striking comments, suggesting that while it seems unlikely, it’s technically possible. Seyffart also advises investors concerned about US government seizure of BTC or seeking protection against societal collapse to avoid investing in spot Bitcoin ETFs.
Spot Gold ETFs vs Spot Bitcoin ETFs
Meanwhile, there’s significant debate on whether spot Bitcoin ETFs will capture the same enthusiasm as spot gold ETFs, especially regarding the level of security they offer.
Seyffart compares spot gold ETFs with spot Bitcoin ETFs, suggesting that the latter faces fewer potential issues, such as concerns over impurity and counterfeit bars. He emphasizes that spot Bitcoin ETFs with transparent practices like proof of reserve and wallet address sharing are less risky compared to spot gold ETFs.
A social media user known as Bitcoin Lens on platform X counters Seyffart by stating that governments could more easily seize spot Bitcoin ETFs with just a decree to hand over the keys. In response, Seyffart notes that the same could be said for gold in vaults, which has happened before. However, nothing about an ETF prevents anyone from keeping their Bitcoin in a cold wallet address.
