from my understanding of ETF, they might be used to leverage short the underlying asset. The Blackrock ETF could then be a dangerous attack to bitcoin price. While we, privileged citizens, could stack cheap sats, many people will be hurt by this. I'm thinking about emerging small circular economies and poorer country citizens having all their savings in bitcoin. Also, this volatility could scare a lot of precoiners away. What do you think?
Discussion
super short answer but I think in the long run sat stackers create a hard-to-stop short squeeze against someone shorting a spot ETF.
yep. they can arbitrage the price in either direction with spot or futures. ETF is most certainly designed to manage the price of bitcoin.
If I short, I might be signaling where I’d be willing to buy - I purchase a short option at $25k
Or - I sell a short option at $25k because I actually want someone to by my BTC at that price so I don’t loose too much if I bought at 30
Levered or not, why would either direction of this practice be damaging?