Former BitMEX CEO gives reason why bitcoin may fall

Arthur Hayes, the former CEO and co-founder of cryptocurrency exchange BitMEX, has expressed concerns about the future of bitcoin, pointing to potential threats from traditional finance (TradFi) and spot bitcoin ETFs.

In his latest article, Hayes stated that TradFi asset managers could «completely wipe out the BTC» if the ETFs they manage achieve significant success. He emphasized the uniqueness of BTC as a cryptocurrency, which is different from any other monetary instrument, and expressed fears that it falling into the hands of large asset managers could lead to the demise of this cryptocurrency.

Hayes also expressed doubts about spot bitcoin ETFs, arguing that many traditional financial institutions are not optimistic about BTC and may seek to become crypto-owners. In other words, the interest of these firms in bitcoin may contradict the decentralized system underlying it.

While some analysts, including Bloomberg’s Eric Balchunas, see spot bitcoin ETFs as having the potential for mass adoption of the cryptocurrency due to its convenience for investors, Hayes warns of possible negative consequences, including a threat to the very existence of bitcoin if it is no longer actively used and simply stored.