Replying to Avatar Mark Sea

The latest request by the SEC to make the ETFs a “cash creation” would make the ETF hold cash instead of the actual bitcoin for the customer and if the don’t have to show proof of reserves, they can suppress the price (ex. Blackrock holds the cash and buys/holds at Coinbase). Could be insolvent if bitcoin rips and they don’t have enough bitcoin for customer withdrawals (if allowed).
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JG 2y ago

Not an expert on this but I've seen a couple of explanations of what a "Cash Create" means, and this is the sort of thing I see:

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JG 2y ago

My understanding is the existing Spot ETFs in Canada (which we've had a couple of years now) use Cash Creates and they've always tracked the BTC price well.

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The Daniel 🖖 2y ago

I have no idea what this means but it sounds ridiculously stupid.

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JG 2y ago

This comment was a follow up to my previous reply, which included this explanation. I find it's best to try to stay calm and seem to understand before reacting.

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The Daniel 🖖 2y ago

So…kind of a nothingburger?