“ BlackRock is legally and reputationally obligated to maintain 1:1 physical reserve for the paper Bitcoin, this drives up demand for spot as their customers buy paper.

MOST IMPORTANTLY

It turns Bitcoin into no-friction collateral, since ETF shares can be borrowed against as a margin loan.

Since the entire fiat financial system runs off debt, this is a missing piece needed for the speculative attack and why the deep state has been fighting spot ETFs.

Using margin, the cost will be trivial for someone to buy 2 billion worth of Bitcoin with only 1 billion in cash.”