“On the Bid”
There’s always someone on the bid. “Flash crashes” are still going to happen - 20/30% but turnaround will be in weeks not years. IMHO.
There will always be lettuce hands. Always. And sellers at certain prices.
Discussion
Yeah bitty has already recovered from dips much faster than pre ETFs. The ops thought the etf buyers would have paper hands, but they bought the dips. Very little outflows. The ops are just projecting
Do the ETF’s allow for redeemable BTC at some point?
I wonder how that changes things.
Without a doubt they will. They want to integrate bitty into the existing system
It will flow both ways. Deposit bitty into an etf, take a loan against the etf for a cheap rate.
Interesting for sure. Not the loan shit but the withdrawal as real BTC instead of Fiat. I wonder how that would work & I guarantee there will be minimums like “accredited investors only” etc. GBTC tried this for a while as well. Brought in Cathie Wood at scale.
I think being able to deposit Bitcoin directly is more of a game changer. I bet there are more people with Bitcoin that would like to borrow against IBIT without having to undergo a taxable event than there are IBIT holders that now want to self-custody.
All a plus in the end. Ops won’t be able to fud about paper bitcoin
Maybe. We will see.
So is this the idea: buy IBIT with dirty fiat. Withdraw as BTC from IBIT (now clean). Deposit BTC back into IBIT to chase yield on your own new BTC?
If you buy IBIT with fiat, then you can just borrow against it right away, no need to withdraw the BTC and deposit it again.
Who this helps most is people that already have btc that won’t have to sell (pay taxes) and then buy IBIT with fiat and borrow against it.