Can someone explain to me what is the purpose of a single asset ETF, especially if said “asset” is divisible in millionth of little pieces?
Making sure you never actually own the asset.
Discussion
Reason is some big institutions are only allowed to invest in such financial instruments, but for example not in Bitcoin directly. This way they can. But nobody of us should. Just buy Bitcoin and hold it in cold storage.
Gold & Silver told me this is a good idea to control a rare commodity.
Gold and silver? If I can’t test it with my teeth I am not interested
99% of people that “own” gold & silver will never touch anything but a wedding ring or necklace.
I tell normies about Gold and Silver and they look at my tinfoil hat and say "Noooo to Gold and Silver" and then I say, "You're already invested in gold, just look at your wife's wedding ring" and they still don't get it.
For market participants that operate partially/entirely through institutional brokers for their investments, it gives them integration with their existing trading tools, relative price exposure to the asset, and the ability to arbitrate loss or seizure in ways they are already accustomed to without the need to custody the asset themselves.
It is built for an entirely different threat model and use case.
Reason is to enrich early adopters?
401k’s