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🚀 Spot Bitcoin ETFs Centralize Control, Raising Systemic Risk Concerns

Spot Bitcoin ETFs have altered the landscape of Bitcoin ownership by centralizing control and operational authority through custodial structures. According to NS3.AI, this setup creates a separation between economic exposure and actual ownership, concentrating risk among custodial intermediaries. As ETF holdings increase, the dependence on a limited number of custodians amplifies systemic risk due to potential operational failures. This situation highlights the trade-off between convenience and control for investors.

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