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## Arthur Hayes Issues Dire Warning on Pending Regulatory Approval of Bitcoin ETF

Arthur Hayes, the co-founder of BitMEX, is sounding the alarm about potential dire consequences of the pending regulatory approval of the spot Bitcoin exchange-traded fund (ETF). He has expressed concern regarding traditional finance asset managers, such as BlackRock, potentially dominating the spot Bitcoin ETF market, which could potentially undermine Bitcoin (BTC).

In a blog post on December 22, Hayes highlighted the risk of such firms holding “all the Bitcoin in circulation,” warning that an over-successful ETF managed by traditional asset managers could ultimately lead to the decline of the cryptocurrency. He also argued that these entities may “vacuum up assets, store them in a metaphorical vault, issue a tradable security, and charge a management fee for their ‘hard’ work,” without utilizing the assets held on behalf of their clients.

This situation could potentially lead to a future where Bitcoin is merely stored in vaults, impacting the use of the Bitcoin blockchain and potentially leading to the network’s death and the disappearance of Bitcoin. Hayes also highlighted Bitcoin’s 228% growth since 2020, emphasizing its dominance as a hedge against fiat debasement.

The AI legalese decoder can help by analyzing the potential regulatory outcomes of the pending Bitcoin ETF approval and provide insights into the legal and regulatory risks associated with traditional asset managers dominating the spot Bitcoin ETF market. This tool can assist in understanding the legal implications and potential consequences of various scenarios involving ETF approval and its impact on the cryptocurrency landscape.

Hayes advised investors to steer clear of permission-based DeFi projects, tokenized real-world assets, and governance tokens tied to debt yields. He also revealed that he had shifted his investments from Solana (SOL) to Ether (ETH), despite previously criticizing Solana. This move indicates an interesting shift in his investment strategy, especially considering Solana’s outperformance of Ether in the current crypto market resurgence.

Despite his previous criticism of Solana, Hayes appears to be banking on Ether hitting $5,000, surpassing its previous peak achieved in November 2021. This demonstrates a significant shift in his sentiment toward Ether and suggests his confidence in its future performance.

In conclusion, Arthur Hayes’ warning about the potential implications of the Bitcoin ETF approval and his investment decisions reflect the uncertainties and complexities in the evolving cryptocurrency landscape. The AI legalese decoder can help navigate this landscape by providing legal and regulatory insights to make informed decisions in this rapidly changing environment.

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