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ETFs make bitcoin’s problems even worse

Bitcoin ETFs are likely to exacerbate its bad performance in crises by bringing in even more speculators to what’s already mostly a speculative asset

The new bitcoin ETFs reconnect bitcoin both to Wall Street's old financial infrastructure and to the dollar
The new bitcoin ETFs reconnect bitcoin both to Wall Street's old financial infrastructure and to the dollar Photo: Michael Nagle/Getty Images

The new wave of US bitcoin ETFs risk being doubly bad for investors.

As holders of bitcoin they undermine the very purpose, and so the long-term value, of a cryptocurrency. And as ETFs launched at a moment of popularity they might be repeating the mistake of many past thematic funds by buying at a peak.

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