Serious question: HAS ANYONE CONFIRMED THE RESERVE REQUIREMENTS FOR THESE SHITTY ETF’s??
ANYONE? Dead serious. Nobody can answer this.
Discussion
😂🤙
I read a bunch of the Blackrock prospectus. They have a pretty sophisticated plan for keeping fully reserve. But they also have the right to suspend their pricing method unilaterally. It’s going to work perfectly right up until it doesn’t.
Daily settlement? 1:1 reserves to cash?
Trading days, and yes they’re supposed to peg for NAV. In theory if one ETF lags its NAV too much it will lose ground to the others.
6102 remains a pretty logical endgame though because the majority of these coins are going to be held at Coinbase
Where the fuck are they going to get the BTC to back a 1:1?
This is wild.
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
Makes sense but still it’s doesn’t answer the question concretely. Supposed to and maybes are what we have on these things.
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
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.
I think some will do proof of reserve and provide addresses and such as an incentive to woo certain investors who want that transparency.
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
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.
It is not a derivative
Where do ppl go buy $1M+ of no KYC bitcoin?
People that buy the ETF aren’t buying BTC.
📄 🙌
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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.