While Satoshi Street eagerly awaits the launch of the first Bitcoin ETF, Bitcoin maximalist Max Keiser has been raising red flags against the financial instrument.

Will US Govt. Confiscate Bitcoins?

Bitcoin advocate Max Keiser has raised concerns, asserting that holders of BTC ETF (Exchange-Traded Fund) are not safeguarded against potential government seizure. Keiser alleges that the U.S. government has intentions to confiscate all Bitcoin held within ETFs, citing national security interests as the driving force behind such a move.

He also cited an excerpt from the Valkyrie Bitcoin Fund Form S1 Registration Statement that a US federal regulator can force the Trust to liquidate the Bitcoin of “seize”, “impound”, and “restrict” access to the Trust’s assets.

Keiser argues that this would be very much against the decentralized nature of Bitcoin. Note that the spot BTC ETF issues shares against the physical Bitcoin purchases. However, it remains with the designated custodians, unlike the self-custody. Recently, SEC veteran also criticized the Bitcoin ETF applicants while referring to them as opportunists.

https://t.co/1rLrQVspus pic.twitter.com/po96XAHOuA

— Max Keiser (@maxkeiser) January 7, 2024

Bloomberg’s senior ETF strategist James Seyffart noted: “However outlandish the prospect of this may be in my opinion. It’s the first criticism of Bitcoin ETFs that I’ve seen from Max in recent days that I guess is technically true?”

However, Seyffart added that one should refrain from investing in BTC ETF if they have concerns about Govt. seizure or want to hedge against the societal collapse.

Gold ETF vs. Bitcoin ETF

There’s been a discussion about whether the BTC ETF would be able to garner the same enthusiasm that the Gold ETFs did. Also, whether they would be offering the same level of safety like the Gold ETFs.

Bloomberg ETF strategist James Seyffart has weighed in on the comparison between gold ETFs and Bitcoin ETFs, asserting that gold ETFs face more potential issues, including concerns about impurities and fake bars. Seyffart emphasizes that a BTC ETF, especially one with proof of reserves and transparent practices such as sharing addresses, may present fewer risks compared to gold ETFs.

Honestly. However outlandish the prospect of this may be in my opinion. It’s the first criticism of #Bitcoin ETFs that I’ve seen from max in recent days that I guess is technically true? https://t.co/kyjQx9IGsM

— James Seyffart (@JSeyff) January 7, 2024

However, one user aka Bitcoin Lens on X platform countered James Seyffart stating: “Bitcoin ETFs are much more easier to confiscate by governments. A decree to turn over the keys to government. Done. When it is so easy to do, they will be more tempted to do”.

Responding to it, Seyffart said: “I mean. Ofcourse. Same can be said about gold in vaults. It’s literally happened before. But nothing about the ETF is stopping you or anyone else for that matter from keeping your Bitcoin in cold storage. Thats my point”.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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