July 4 (Cointime) - Interest in crypto-based exchange-traded funds (ETFs) is growing among traditional finance firms, with BlackRock, Fidelity, and others submitting applications for Bitcoin-based ETFs. HSBC has become the first bank to offer Bitcoin and Ether ETFs to customers in Hong Kong.

However, concerns have been raised that ETFs could distort the market and undermine Bitcoin's monetary policy by allowing paper Bitcoin to be printed without the underlying asset. It is important to remember that true ownership of Bitcoin requires control over the cryptographic keys associated with specific Bitcoin addresses.

Bitcoin's digital nature makes it vulnerable to theft and mismanagement, and relying on outside custody solutions could be a trap, warns a Bitcoin analyst for Trezor. While a major Bitcoin ETF approval may lead to a short-term price increase, it could have a negative long-term impact on adoption, as true adoption is linked to self-custody. This article is for informational purposes only and should not be taken as legal or investment advice. The author's views do not necessarily reflect those of Cointelegraph.