BitMEX Founder: How Can the Elite Control BTC Through ETFs?
Crypto asset exchangeBitMEXThe founder ofArthur HayesIn its latest article entitled “ETF Wif Hat,” the intricate relationships between traditional finance and the emerging field of crypto assets (particularly BTC) are explored in depth.
Hayes compared the financial strategies of current global elites with historical practices and proposed a sustainable model for maintaining the existing financial structure。
Hayes first compared the elite's efforts to maintain the current state of global finance with the high cost of health care at the end of life.
He believes that since the 2008 global economic crisis triggered by the US subprime mortgage, the current financial order, which he called “American Datong,” has been in jeopardy.
Hayes asserted:”The elites in charge of America's current financial order and their vassals are willing to maintain the current world order at any cost, because they benefit most from the existence of this order.”
As a result, central banks around the world, including the US Federal Reserve (Fed), the European Central Bank (ECB), the People's Bank of China (PBOC), and the Bank of Japan (BOJ), have taken measures to print money on a large scale to mitigate the various problems of this crisis.
Hayes stated,This strategy has led to unprecedented levels of global debt as a share of GDP, and interest rates are at historically low levelsNearly $20 trillion in corporate bonds and government bonds had negative returns at their peak.
Hayes believes that this situation has not benefited most people in the world because they don't have enough financial assets to benefit from this monetary policy.
In this context, Hayes introduced BTC created by the pseudonym “Satoshi Nakamoto,”Think of it as a breakthrough development, providing an alternative to the traditional financial system。
He described Satoshi Nakamoto's moment of creation of BTC as a “lotus in the mud,” marking the beginning of a new era of financial independence and global scalability.
However, Hayes pointed out that BTC was initially immature to become a reliable replacement after the 2008 crisis. It wasn't until the financial turmoil of 2022, which included the collapse of several major banks and Crypto asset companies, that BTC and other Crypto assets showed their resilience.
Unlike traditional financial institutions, these digital assets have not been rescued but continue to operate, and BTC blocks are generated every 10 minutes.
Hayes said that by 2023, the traditional financial system will clearly not be able to withstand further monetary tightening. This led to a strange shift where the BTC price began to rise as long-term US Treasury yields rose,This shows growing skepticism among investors about traditional government bonds and a shift to assets such as BTC and major tech stocks。
He also believes that in response to this shift and leaving capital within the traditional system, elites are now financializing BTC by creating ETFs.
Hayes compared this to the gold market, 2004SEC(US Securities and Exchange Commission) has introduced ETFs such as SPDR GLD to make it easier to trade gold without physical holding.
To avoid this liquidation, the elite must financialize BTC by creating highly liquid ETFs. It's the same trick they play in the gold market。
As a result, a BTC ETF will enable traditional finance companies to manage BTC investments and keep capital within the system. Hayes highlighted the significance of major asset management company BlackRock applying for a BTC ETF in June 2023.
Notably, after years of rejecting similar applications (including the Winklevoss brothers' application in 2013), the SEC appeared to have accepted BlackRock's application and approved it within six months.
This shows that the elite took a strategic move to integrate BTC into the traditional financial system at a critical moment。
However, Hayes warned that there is an essential difference between a spot ETF and directly owning BTC. A spot BTC ETF is a trading product, and you can buy it with fiat to earn more fiat, but it's not BTC, nor is it a way to achieve financial freedom because it's not outside of the traditional financial system.
Looking ahead, Hayes discussed the market impact of spot ETFs, focusing on BlackRock ETFs because of BlackRock's global reach and distribution capabilities.
Hayes predictsAs inflation continues, the Crypto ETF complex will continue to gather assets, driven by the continuing loosening of global economic and military arrangements after World War II and the inflationary nature of the war。
Finally, Hayes reflected on the possibility that traditional finance would financialize BTC, believing that this would initially push up the legal price of BTC:
“The bull market has just begun, and 2024 will be a turbulent year as far as price trends are concerned. But I still expectBy the end of the year, the market capitalization of BTC and the entire Crypto asset complex will reach or surpass all-time highs.”
