Most everyone wise enough to own Bitcoin is wise enough to own actual Bitcoin and not paper Bitcoin.
80% expectation that the Bitcoin ETF approval will be a nothingburger.
Discussion
I don’t think so. Bitcoin ETFs are buying real Bitcoin with public funds and only allow cash redemptions. When fiat collapses, the public is going to be left with worthless cash, while funds hold onto the appreciating Bitcoin. A subtle heist using investor money!
My point is that nobody will buy shares of the ETFs, and so the ETFs won't be loading up on very much spot Bitcoin. The investment banks behind these ETFs are only talking about seeding them with a small $10 million or so.
There are two types of investors:
1. People who understand Bitcoin, and they will buy actual Bitcoin and not the ETF where they pay a fee to a fund manager.
2. People who don't understand Bitcoin, think it's too volatile, just a scam, etc., and they're not going to buy a Bitcoin ETF because they don't think it's a sound investment.
A handful of ignorant retail investors will gamble on the ETF, or options on the ETF, trying to capture the alpha, but they won't move the needle much and a lot of them will end up selling at a loss because that's what most retail traders do.
Well, you’re going to be surprised soon, I guess.
I don't know... The Finkster went on national TV saying it was a flight to quality, so it's boomer-approved. Jim Cramer will have them all buying BTC ETF's soon.
Goood analysis.
The big guys seem to be so ready for it, so desperate to create and capitalise from the hype. I seriously believe this etf drama wont end well.
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Just another pump and dump
There's a third kind - institutions slavering with FOMO, but too federally-regulated (and with their own retail clients too lawyered-up) to self-custody.
#UnpopularOpinion
The ETF will succeed, but its market cap will remain a small and relatively uninteresting niche compared to #bitcoin held in self-custody.
Or it's gonna turn into a rugpull that'll make Mt. Gox look like a kid getting his milk money stolen.
I don’t think Saylor holds the keys for Microstrategy, so I don’t think this logic holds up.
Yes. That's why these ETFs aren't a huge deal.
When you understand Bitcoin, you buy actual Bitcoin, not an ETF. If you don't understand it, you don't see the value proposition and so won't buy the ETF either.
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