The Security and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) on Jan. 10 sparked continued price appreciation of the cryptocurrency as institutional funds invested in the asset.
Barely a month later the newly launched ETFs have attracted $7.7 billion, according to Morningstar, resulting in continued optimism in the space.
On Coinbase’s most recent earnings call, CEO Brian Armstrong said crypto “will be a standard part of every diversified portfolio.”
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Coinbase partially benefits from the rise of Bitcoin ETFs — Armstrong said the company has won 8 of 11 spot Bitcoin custody mandates from their issuers.
However, Bitcoin advocate Max Keiser warned investors that putting their money into ETFs might come with hidden risks, as it could leave them exposed to possible asset seizures.
In a repost on X, Keiser cited a news report in which the New York Attorney General Letitia James said she could seize buildings owned by former President Donald Trump if he cannot pay the $355 million judgment against him.
“If they can do this to Trump, they can certainly seize Bitcoin held in Bitcoin ETFs,” Keiser posted.
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Self-custody is one way for investors to avoid losing their Bitcoin, Keiser said.
According to BitPay, the benefits of self-custody include control of the keys, no counterparty risk, more secure storage options and increased privacy.
In many ways, it’s similar to storing gold you own in a private vault rather than investing in a gold ETF such as SPDR Gold Trust (NYSE:GLD). While it might be more convenient to own gold indirectly via an ETF, some investors prefer to own physical gold.
While Bitcoin’s price has increased by over 1,200% in the past five years, the cryptocurrency has been volatile.
According to Keiser, investors should expect that volatility to continue, saying a “1987-style crash [is] coming” but that “Bitcoin, the ultimate haven, will soar past $500,000.”
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This article Bitcoin Advocate Warns ‘If They Can Take Trump’s Assets, They Can Take Your Bitcoin,’ Sees Signs Of Impending 1987-Style Crash originally appeared on Benzinga.com
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