The ETFs messed up pricing.
As an investor it’s not very clear what price am I buying Bitcoin at through the ETF.
It says it tracks the Bitcoin price. That’s fine. But how?
When 1 share of the ETF is going for $49. Does that mean Bitcoin is trading at $49K?
Not to mention each ETF has its own price.
This is so confusing.
You have to look at the number of shares per BTC.
The prices of a share multiplied by the number of shares per bitcoin should equal the current price of btc.
(Price of share) x (number of shares per BTC) = current price of BTC
But yeah I agree, just buy the real thing you idiots 😂
Los ETF vinieron a molestarnos, nunca nos dejarán en paz
The $ ETF price is irrelevant. The ETF price will move the same % as bitcoin moves minus the management fee.
I get that. But when you buy, you don’t get to see the Bitcoin price, you have to check it independently outside of the broker.
It’s because few would buy a share if it were priced at the bitcoin price of $43k.
And it were say 1/1000th of the bitcoin price, the correlation would eventually diverge because of the management fee.
It’s the same as GLD or SPY. Those ETFs are not priced at exactly the same level as gold or the S&P 500.
That makes sense. Thanks.
