Cryto ETF's

Once again talking about crypto for some dumbass reason. As of writing of this article I am late to the party… (31st of January 2024). I was honestly patiently waiting for something interesting to happen so I could come here and shit on the entire 2.0 financial system or crypto economy, since this topic can take a bit of both.

I have the impression that we have grown too a costumed to beautify narratives specially people in tech and finance, and hey, call me a hypocrite been there done that, it’s just part of the job at this point - NO STEVE, you are not democratizing finance. You are running a ponzi scheme hidden behind vc money. Seams off topic but I am kinda sick of startups selling smoke, specially financial related smoke. Legal? Most times, yes. Robinhood and its European equivalents (Degiro, Trading212 etc.) also the numerous crypto exchanges out there increased the the ease for the common folk to lose their money under the promise of making more money… if gambling, sports betting and your cousin’s million dollar idea wasn’t enough.

No shame on finance related startups and companies trying to simplify the financial markets, I just think retail investors are becoming more and more desensitized on to the risks of financial markets thanks to the many startups and their apps full with bells and whistles and clever UI/UX that makes “investing” fun. I do agree that it is marvelous when something complex can be translated into something simple or at least more easily digestible, but when does it become harmful? I also feel that if it wasn’t because of the increase of interest rates, the collapses of the FTX (and Alameda) + domino effect and the subsequent bear markets, we could have seen a extension of the nonsense that we saw in the past years with the TikTok and social media “financial advisors” advising people on investing using leverage, margins, options and all of that good stuff that the common Joe has no fucking clue about.

Now, let’s dive into the really juicy stuff. The crypto ETF’s. In my mind is just a way for boomer investment managers with FOMO of crypto to place a bit of money on it without having to really commit too much. It’s like beating all in black but putting some chips in red just in case, an hedging if you prefer. No need to worry about custody and the added operation complexity of safekeeping crypto since the securities are traded in same exchanges that fund managers already have prime brokerage access. This does not mean that the ETF issuers condemn crypto, it just means that they found another way to suck managing fees out of you. Ask 2017 BlackRock's Larry Fink what he thought of crypto in 2017 (when he thought he had nothing to lose or gain), a different opinion to what his company think now for sure, but hey, listen, I believe in fluid opinions and even tough I shit on it some times, I do see crypto and blockchain as one of this generation’s biggest innovations, yet for what is TBD.

Now, concluding one more of my rants that is for sure are removing my chances of chairing JP or Goldman (Jamie I am coming for you) I want to persuade my readers that preach finance to non financial fluent people to be aware of the power of the weapon that you giving to your “students”. Either you are talking to the camera, making startups or talking to your buddies at the bar or whatever you are somewhat influencing other people. Don’t forget to end the conversation with "No financial advice” to be excluded from liability, ethics, morals and values VERY IMPORTANT lol.