This is a great breakdown of “How ETF’s Work”.
And like all things Fiat, it’s complicated. But worth reading 2 or 3 times.
(8min read)
My tl;dr:
Actual BTC Broker/Custodian buys/hold BTC (i.e. Coinbase)
->
The ETF transfers $$ & issues shares (i.e. ARK/Blackrock/VanEck)
->
a “wholesaler/distributor” broker transfers $$ and receives shares from the ETF (i.e. JPMorgan)
->
a myriad “retailer” brokers transfer $$ & receive shares for their clients (i.e. Robinhood, Edward Jones, et al).
[Worth noting: Fidelity will Self-Custody. I can only assume this will be extremely important to remember at some point in the future.]
Redux:
1) There are multiple points of “cushioning” between when Aunt Alice buys ETF shares and Coinbase/Fidelity buys BTC w/ her money.
2) Not every participant in this chain was prepared, thus couldn’t participate.
3) The BTC price didn’t move Day 1 because the “cushioning” was well prepared and functioned correctly
4) I understand why Blackrock wants to own Coinbase, and the Suits want every other Exchange broken or slain. Coinbase is the ‘point of origin’ to be controlled for non-self-custody.
https://learn.heyapollo.com/blog/how-do-etf-issuers-buy-bitcoin