Crypto ETFs Undermine DeFi's Decentralization Ethos, Says Avantgarde Finance Founder
CryptoNewsTerminal Staff24 May, 2024
Crypto ETFs Undermine DeFi's Decentralization Ethos, Says Avantgarde Finance Founder
Mona El Isa, founder of Enzyme (MLN), believes the introduction of spot ETFs undermines the "decentralization ethos" of crypto. ETF issuers are merely applying a "duct tape" solution to crypto products to bridge the gap with traditional finance (TradFi), thereby defeating the purpose of crypto's inception. While some adoption of these products, approved by the U.S. Securities and Exchange Commission (SEC), will take place, El-Isa believes investors will eventually favor self-custody, which offers more benefits. However, Hao Yang, head of financial products at Bybit, argues that the approval of a spot Ethereum ETF not only solidifies the presence of the crypto industry but also has large implications for other projects in DeFi, nonfungible tokens (NFTs), and other token-based applications.
