Neha's Writings

Neha Narula

Somewhat ironic question, but as ETFs holdings of BTC continue to grow, is there a possibility that the custodians of those ETFs start to have a backup plan for ETF holders or create an alliance to push a fork forward? The management fee those companies generate is non-trivial, so they're incentivized to stay ahead of this.

Now, of course, the irony here would be traditional finance infrastructure winning out over decentralized, which could definitely deal a psychological blow to BTC's perceived value... but it's something I've been thinking about lately as this existential threat rises on the horizon.

Yes, if you read the fine print on the ETFs they tell you what they will do in case of a fork. Usually their custodian picks the "winning" chain at their discretion. There's a similar (although reversed) situation with stablecoins.