If the ETFs are operating legally then all they do is execute buy and sell orders for their clients and custody funds that are not sold.
So if their clients sell then they go sell the corresponding amount of sats at sold exchange rate (that they already bought previously) and settle in cash w their clients after fees.
But are they moving sats around the main chain? My guess is no
I’m sure they just do net settlements one way or the other at regular intervals.
My point is if all clients sold all their ibit shares for cash then the ibit ETF would be legally obligated to sell all their bitcoin holdings on behalf of their clients. They’re suppose to be a proxy for their clients and that’s it. So (again if operating legally) what their clients do determines if they hodl or not.
Yea that makes sense. I don’t see why they’d sell if it’s performing well so I think it’ll keep a lot of transaction volume off the main chain
