Is anyone aware of professional explanation of how BlackRock, GBTC, Ark, etc are even going to acquire this ETF #Bitcoin without sending it to astronomical values? We have never seen a situation like this before in the history of financial markets, and I legitimately don’t even know how this will work.
Discussion
They must’ve already started accumulating. It’s the only way I can see.
Gotta be. Buying from miners maybe?
Blackrock is the #2 holder of a number of publicly traded miners (Hut8, Riot, Marathon, TerraWolf, ect.) I would assume they are getting it straight from them
Haha. Just said that to nostr:npub1vwymuey3u7mf860ndrkw3r7dz30s0srg6tqmhtjzg7umtm6rn5eq2qzugd
They stated in their prospectus they'd be seeding with cash. As long as they trickle the buys, I don't think it will go ballistic. Just up and sideways. I mean I hope it goes vertical but ya know. I doubt it
So they will promise the cash equivalent of the demand until they buy enough to satisfy all demand?
I think they're smart enough to realize and watch the charts as they time their purchases. If they are buying large amounts and the market doesn't absorb the buying with some selling, they'll probably just wait it out. I don't think they have a need or desire to smash buy billions. They're obviously layering in buys but I don't think you'll see buying just for buying sake.
That’s why I don’t understand how they will meet the demand. They aren’t going to be able to do that based on day 1 demand.
Yeah we'll see how it plays out but I think they have a better understanding of day 1 demand than we do. In addition, they've probably already got a really good understanding for the recurring demand in the near term.
There is no doubt they do, it just seems impossible to do it at any sort of reasonable level. It would actually be better for them if the price mooned first. They could convert fiat demands into much less of the available supply.
I don't think there's anything in the prospectus that prevents them from buying and selling... So yeah I'd fully expect them to sell spot and nuke the market from time to time
The world has never experienced a strictly scarce liquid asset, and for that reason I believe it will act in a way we just can't predict
I assume they have sophisticated methods to prevent "price slippage". How much capital do you think they are going to deploy into BTC? I mean, even 1% of AUM is roughly 100 billion for them.
it will work in their FAVOR of COMMAND CONTROL
Leverage buyout Greyscale or MicroStrategy
While I think that’s unlikely, I live this answer.
Yes, if you have a business account with an exchange you can make large otc purchases with out market swings.
No doubt. Still think it’s gonna require more than what the OTC can even give.
One could try to buy directly from large miners as well but I’m not really sure if that’s still an option.
After that tho & price pumps I’m sure people will sell so exchanges will be able to handle otc buys as again.
ETFs ain’t going d2d for btc