Some analysts say that holding actual Bitcoin is in the “best interest” of ETF issuers, while others argue that the cash-create model won’t allow one to track BTC holdings.
Amid the ongoing hype about the potential approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in January 2024, some industry analysts have expressed concerns about some ETF-associated problems, including the issue of backing.
Josef Tětek, a Bitcoin analyst at the hardware crypto wallet firm Trezor, said in December 2023 that spot Bitcoin ETFs may take people further from self-custody and potentially create “millions of unbacked Bitcoin.”
Tětek said that such ETFs could possibly end up in so-called “paper Bitcoin” in one of the bad scenarios.
