With #Nasdaq closed, today feels like a global holiday that doesn't count.
There are now lots of shorts to be wiped out, but even #Binance, as mighty as they may be, will not be able to make it happen before the Grayscale $GBTC selloff continues tomorrow.
#HODL YOUR #BITCOIN
But this doesn’t make sense. The sell-off in GBTC is a rollover trade, funds from GBTC are going into the other ETFs. There is a 2-day delay in settlement, sure but the system is working in “steady state” starting market open tomorrow. Not to mention the capital inflows to the ETFs incremental to GBTC. None of these bearish ETF analyses referring to GBTC make sense to me…
Some settle in minutes, some by end of day, some in two days.
Where is this information? In the disclosures?
It’s just the way that all ETFs function. I don’t think there’s a rule that it has to be settled within a certain timeframe.
Thanks. I just read ARK’s disclosure. I didn’t see a reference to the contractual timeline defining the settlement in the physical bitcoin market. Seems like T+1 or T+2 would be standard across the lot of them for easier administration. If one of them was doing hourly or 5-minute settlement, that’d be a huge competitive advantage for that ETF.
There’s a lot of moving parts. Aspects and inner workings that I’m not familiar with, but it seems like it’s all standard practice for exchange traded products.
I’m trying to learn as much as I can, so that I can actually approach the topic with a little understanding so as to discuss the topic, rather than just regurgitating the same trope.
They are here. They will be here. And they will 100 percent affect price. Price matters. We live in a world where money = power and to ignore it, is to our detriment. Bitcoiners need to be close to the power centers to affect change, and there’s a price to be paid to get there.
https://thoughtful.purposeinvest.com/how-does-a-bitcoin-etf-work/amp/
“Demystifying clearing and settlement
We mentioned clearing and settlement a couple of times above. And while most people have a vague idea of what that means, breaking it down further is a worthwhile exercise if you really want to understand how a spot Bitcoin ETF works.
So, let’s peel back the layers a bit more.
First off, let’s make sure we understand what clearing and settlement means. Clearing is the process of reconciling daily transactions.
Settlement is the finalization of these transactions. In the context of a spot Bitcoin ETF, settlement occurs when bitcoin is titled to the buyer and money is transferred to the seller.
Clearing and settlement for Bitcoin/cash looks something like this:
The ETF Provider will agree upon terms to buy/sell crypto in bulk quantities with Crypto Trading Counterparties.
The Sub-Custodian will be informed about the trades and will proceed to settle and clear these trades. This involves receiving the cash and crypto from each party, verifying that each party provided the appropriate amounts and then releasing the cash/crypto to the other party.
This settlement and clearing process can take between minutes and one business day to occur.
When the settlement process is complete, the transactions are final and irreversible.
The role of a trusted intermediary (Sub-Custodian in this case) in the clearing and settlements process ensures that no one pays for something and does not receive what they’ve bought.”
