Original archived Re: ETFs the silent transaction killer
Scraped on 05/09/2025, 05:25:08 UTC
First of all this isn’t an original idea, I read something somewhere and will definitely go pull the source. The general theme was that as paper bitcoin increase(etfs,dats etc) there will be less circulating bitcoin and thus transactions fees will be impacted negatively. It sounds plausible, I’m a bit stuck on the a holder is a holder no matter where they are self custody or third party, but do you think this will have cause transactions to drop off over time as more adoption happens on the paper side?
Even before ETF there's something called exchange which happens off-chain in its transaction.
ETF just allow institutional investor access to bitcoin that's deemed easier in legal aspect. Nothing more.
As for the transaction itself. exchange is already doing what you desribed. So, honestly I don't really think ETF is the sole culprit here.