Euroviews. Are we trading Bitcoin’s price for its centralisation?

The recent surge in the price of Bitcoin (BTC) has the market feeling more buoyant and positive than it has in some time. 

Traders and investors across Europe, the US and the UAE seem optimistic about the approval of exchange-traded funds, or ETFs, which could further propel its value — exciting even for those outside of the United States. 

However, while this development may be seen as positive for price growth, it raises concerns about the decentralisation of the market. 

And as the ETFs have been approved, soon we will know if they can attract more institutional investors, thus boosting liquidity and market stability. However, we must question whether this influx of external influence comes at a cost.

Not everyone shared the optimism regarding the US Securities and Exchange Commission's (SEC's) approval. Prominent Bitcoin critic and gold advocate Peter Schiff has voiced concerns. 

He cautioned that ETF approval could have a catastrophic impact on the price of Bitcoin, especially if the anticipated institutional demand fails to materialise. 

This and some other perspectives challenged the general optimism, and they even created a temporary surge in Bitcoin’s price over the last weeks. But the answer is — no one has the answer to what will come next.

The BTC ETFs were approved by the SEC last week, but the question of the legitimacy and positive impact of external influence on crypto is still in the air. 

Among the eight ETFs that were awaiting approval, only one of them utilises a decentralised custody solution (Fidelity). The remaining seven, including Coinbase, rely on centralised custody solutions. 

This raises a crucial concern: are we overlooking the fact that ETFs, while supporting price growth, could undermine the core