Delete comment from: DSHR's Blog
Dave Nadig's The Magic of In-Kind Bitcoin is yet another sign that TradFi has eaten cryptocurrencies:
"A regulated registered vehicle is just about the worst place that someone should try to launder money. What's the point of sending bad Bitcoin into an ETF when you're getting back registered securities that have to be traded and custodied in regulated institutions?"
"Bad Bitcoin" is something the crypto industry has spent a lot of time on. There are now multiple layers of KYC/AML checks - both at the authorized participant level and at the custodian level, leading to a situation where Bitcoin ETFs likely have stronger controls than most traditional ETFs or funds. When you buy an ETF, you get all the regulatory protections of the TradFi system (like, say SIPC protection if your broker goes under), and all of the additional blockchain analytics that make these products arguably "cleaner" from a compliance perspective than, say, a Gold ETF."
Sep 6, 2025, 3:59:38 PM
Posted to Luke 15:7