CoinShares Strategy Director Meltem Demirors does not find institutional investors useful for the crypto industry, and ETF on bitcoin is the main cryptocurrency market tool.
In an interview with RealVision, Meltem notedthat growing centralization threatens a counter-revolution ecosystem of digital assets. The concentration of a large number of assets in a small number of firms - centralizes the risks.
With traditional finance, this is dangerous, but not fatal. Saving banks remains commonplace in any country in the world. However, with bitcoins, this is both dangerous and potentially deadly, Demirors claims.
Also, if cash flows from Wall Streetflow into regulated custodial services, they accumulate on deposit most of the available bitcoins. Then traders will stop trading the asset itself and use the bitcoin network itself for exchange. A depositary receipt for bitcoin, which is in the depository, will be enough. Can the network survive under such conditions, and Bitcoin remain “by itself?” Demirors asks.
According to the cryptostrateg, new business models are notrisk-prone, but create a sharp imbalance between the principles of the Bitcoin community and the reality of most of the industry. The principles of confidentiality and decentralization “dissolve in big money”. Ultimately, power will remain with those who control the coins.