Subnostr

Serious question: HAS ANYONE CONFIRMED THE RESERVE REQUIREMENTS FOR THESE SHITTY ETF’s??

ANYONE? Dead serious. Nobody can answer this.

ETFs are not like banks.

For example, BlackRock will buy X amount of bitcoin and give it to their custodian (Coinbase) which will then give BlackRock a receipt which is what goes into the ETF.

Coinbase or any other custodian would be the one that could fuck around and create paper bitcoin, but I’d imagine BlackRock and the other institutions will be looking at the addresses to make sure the Bitcoin they have a receipt for is there.

This is my understanding anyway. The whole ETF = paper bitcoin meme comes from a lack of understanding it seems. Fred Krueger commented on that on a recent video

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Discussion

nobody 2y ago

Makes sense but still it’s doesn’t answer the question concretely. Supposed to and maybes are what we have on these things.

DRE 2y ago

I think they will all be backed 100%. Institution buys bitcoin gets receipt from custodian and the receipt is traded in the ETF. The institutions make money from fees and the custodians I imagine also get a cut from the fees. There is no real need or incentive for institutions that manage a trillion plus in AUM to engage in shady stuff like SBF. Risk reward for fucking around is not there imo

nobody 2y ago

I agree and don’t think they will do FTX shady stuff at all. I do think that reserve requirement’s are unclear by design & are not 1:1. This is fractional reserve BTC territory we’re heading into.

Truly scarce is a problem for them all. Big problem.

If it weren’t, the answer would be as clear as the sun on a beautiful sunny day. But alas, nobody has a clear answer.

CitizenPleb 2y ago

I think some will do proof of reserve and provide addresses and such as an incentive to woo certain investors who want that transparency.

nobody 2y ago

Rule for 1 should be rule for all.

CitizenPleb 2y ago

I would agree, but seriously don’t care if they hold buckwheat in reserves.

nobody 2y ago

It matters a little. How papery will our beloved BTC become. Very or not much?

CitizenPleb 2y ago

There will be a thick ass layer of paper. Already is.

nobody 2y ago

True dat.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 2y ago

well, it would matter if it affected the spot price but it's a derivative and if anyone is stupid enough to confuse the two then ... well...

it's a derivative, ok? it's a derivative, shout it from the towers!

you can have the real thing without any fucking KYC or account or any government approved shiot

ETF = derivative

degree 1, but it's still a derivative

nobody 2y ago

Yes but you missed the point I think. Nobody thinks the customer will own any BTC. Cash-in/cash-out is clear.

Read again for clarity if you want to add.

DRE 2y ago

It is not a derivative

Where do ppl go buy $1M+ of no KYC bitcoin?

nobody 2y ago

People that buy the ETF aren’t buying BTC.

Bobo ⚡️ 2y ago

📄 🙌

nostr:note1yjlam6f3jez6nahnhgpdkden8f0d4v7rjks0mynlz5m2t55uexvqnjha5t

DRE 2y ago

That’s right, they are buying the ETF and they know it. They like it

Idk why orange pillers assume high net worth individuals won’t know the difference. I think it’s all just virtue signaling and cope for not stacking hard enough.

I could care less if people sell some of their S&P 500 ETF to buy the bitcoin ETF instead of buying bitcoin itself. They don’t need to value what I value.

nobody 2y ago

🎯