Could someone please explain?
I see there is an assumption of some billions coming into BTC thanks to ETF money.
But if I understand - ETF is just a product tracking the BTC price.
Do they even have to buy BTC to run ETF?
What stops them from issuing 100 billion of HODL or other ticker and each one tracks BTC price?
#asknostr
#plebchain
#bitcoin
IMO yes they have to buy bitcoin, if they issue more shares perhaps they dilute shareholders but not bitcoin...? I liked this vid
Yes part of the ETF structure is that they must hold the underlying assets (BTC). They have t+2 to settle... meaning on a rolling basis, they have 2 days to buy (if not already own) enough BTC to cover the NAV (Net Asset Value) which in this case should be equal to the amount of ETF shares outstanding/issued.
They legally must buy and own the assets. The paper is backed one to one buy actual on chain BTC. They are audited.
