Avantgarde Finance Founder Warns Ether ETFs Approval Threatens Crypto Ethos
The Avantgarde Finance founder Mona El Isa warns that the Ether ETFs approval by the SEC threatens to destroy crypto ethos. The decentralized finance (DeFi) executive illustrated that the Securities and Exchange Commission’s (SEC) decision to approve Ether (ETH) ETF triggered investor excitement and scrutiny of the decentralization.
Avantgarde Finance Founder Considers Ether ETFs Approval Hurts Crypto Ethos
Although the larger crypto community is celebrating the accelerated green light granted the spot Ether exchange-traded funds (ETFs), Avantgarde Finance executive decries that the centralized nature of the products is destroying crypto ethos.
El Isa illustrates that cryptos such as Bitcoin and Ether fueled the revolution of finance by eliminating intermediaries and eliminating reliance on the central authority.
El Isa considers that introducing ETFs threatens to destroy crypto ethos, particularly eroding decentralization.
El Isa warns that ETF issuers gradually integrate outdated technology into digital assets. The presence of obsolete technology is bound to undermine the crypto purpose of retaining relevance.
The DeFi executive observed that the newly Ether ETFs Approval spurred increased interest from the traditional finance (TradFi) segment since they are familiar with the ETF structure and the regulations involved as they convey the language of conventional finance.
El Isa decries that the expanded access to Ethereum via the Ether ETFs Approval fails to net the core benefits attainable in Ethereum’s ideal decentralized and disintermediated design.
Avantgarde Finance Founder Predicts Increased Ethereum in Self-custody
The Avantgarde Finance Founder illustrates that the newly approved product will realize adoption. The DeFi executive indicates that investors will likely prefer self-custody to hold ETFs as the former offers more benefits.
El Isa indicates that investors will become accustomed to crypto and, therefore, desire to hold Ethereum via noncustodial means to optimize the benefits harbored by the technology.
The Avantgarde Finance founder illustrates that holding Ethereum noncustodial enables one to leverage the optimal benefits of the tech, including low cost, safeguarding against counterparty risk, and assuring instant capability to execute transactions.
El Isa added that the noncustodial crypto wallets enable users to exercise ownership over Bitcoin by assuming full responsibility for the private key and actual assets.
ETH ETFs Approval Hurts Crypto Ethos
The Avantgarde Finance founder laments that, unlike self-custodial solutions, the crypto ETFs deny the opportunity to hold crypto as they utilize third-party custodians such as crypto exchange Coinbase.
El Isa aligns with the pronouncements by leading industry executives that the stunning turnaround by the Gary Gensler-led Commission triggered excitement and decentralization debate.
El Isa points to the devotion of Ethereum co-founder Vitalik Buterin to addressing the issues confronting the Ethereum network.
The Avantgarde Finance founder echoes the view of Bybit financial products chief Hao Yang, who considers that a solution to MEV and liquid staking is critical to striking a balance in safeguarding the decentralization of Ethereum, thus guaranteeing democracy.
Yang is optimistic that the crypto industry’s future hinges on the latest approvals. He added that the approval of the BTC and ETH ETFs yields confidence in the broader crypto industry. Its impact transcends across the DeFi space, nonfungible tokens (NFTs) and token-affiliated applications.
El Isa’s criticism of crypto ETFs, particularly Ether ETFs approval, aligns with the skepticism exhibited by other industry stakeholders questioning the vulnerability to centralization.
Josef Tětek, who undertakes Bitcoin analysis within the hardware provider for crypto Trezor, warned that spot Bitcoin ETFs were drawing away the investors from the self-custodial realm, thus generating millions of unbacked Bitcoin.
Trezor chief executive Matej Zak warned that storing ETF’s underlying cryptocurrency within platforms such as Coinbase exposed the spot crypto ETFs to hacks.
Nonetheless, issuers are downplaying the emergence of conflict in self-custody and the spot crypto ETFs.
