That seems way too risky for them to actually do that. You really think they didn’t buy the bitcoin?
I dunno. Maybe they already owned it. This has been happening with gold for decades.
The more that IOUs are accepted as bitcoin, the higher the bitcoin supply. The current price is absurdly undervalued, but the price is set by exchanges. FTX had billions in bitcoin liabilities and owned only a couple million. For all we know, the etfs are buying fake bitcoin from coinbase.
Them assigning btc they already owned to the etf makes the most sense to me. Seems like some of the other shenanigans are possible though.
Blackrock has to actually buy the bitcoin. They’re not going to take the risk of illegal fractional reserves with 11 other issuers being competitors. One hint that they are doing that and they’re done for. Unlike FTX, this is strictly regulated by the SEC, and yes, they will enforce it regardless of our skepticism of the SEC.
The sell off right now is due to people getting out of grayscale. People are fleeing gbtc while others are entering the other ETFs, mainly blackrock. Essentially the Bitcoin that gbtc is selling off is being bought right back by blackrock. There’s a chance that the price is going down because obviously, grayscale needs to sell theirs before black rock then buys it so there’s a lag, but there’s dozens of other factors at play as well so no one can say anything with certainty.
None of this truly matters, the price only goes up in the long term.
