I have a question about the bitcoin ETFs.
Since it’s cash in, cash out, are the ETFs legally required to hold the asset, or just have enough cash to cover the withdrawals?
Discussion
I don't have a source handy, but my understanding is when money is put into the ETF, they do have to buy Bitcoin within "a certain amount of time" (not sure how much time, maybe daily or so).
Plus obviously holding any large portion in cash is a quick way to become insolvent given Bitcoin's volatility, and I don't think any of the ETF managers are *that* stupid, even if it was a legal option.