Meltem Demirors Says Banks Won as Bitcoin ETFs Pull Crypto Into Wall Street's Orbit

Spot bitcoin ETFs have not made bitcoin more useful and have pulled crypto into the traditional financial system it was meant to disrupt. Bitcoin was originally envisioned as decentralized peer-to-peer electronic cash that bypasses central banks and operates outside conventional financial structures. Recent efforts have shifted toward building infrastructure for institutional ETF access and onboarding Wall Street capital, alongside treating bitcoin as an investment or speculative asset. Crypto’s identity is also being reframed as foundational infrastructure for artificial intelligence, changing its role from a sovereign currency alternative to a B2B tech utility layer. This shift has alienated early supporters and has led some to reduce holdings while others promote alternative cryptocurrencies.

"My view is [that] crypto has an identity crisis. Shoving bitcoin into ETF did nothing to make bitcoin more useful. I spent 11 years of my life extremely excited about the opportunity to use bitcoin and crypto to change the financial system. Ultimately, the banks won, Demirors said in the interview."

"Built on cyberpunk ideals, bitcoin was envisioned as a decentralized and peer-to-peer electronic cash system that bypasses central banks and operates outside traditional financial structures. However, in the last few years, the focus has pivoted toward building infrastructure to support institutional ETFs and onboarding Wall Street capital. This is in addition to its use as an investment or speculative asset."

"A significant facet of Demirors' current thesis is that crypto is shifting from being purely an alternative financial network to serving as foundational infrastructure for artificial intelligence (AI). This shifts crypto's identity from a sovereign currency alternative to a B2B tech utility layer, fundamentally changing who uses it and why."

"Bitcoin's perceived pivot has increasingly alienated early supporters of the cryptocurrency, with some, like Mark Cuban, dumping most of his coins. Others are now touting coins like Zcash as d"

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