They stated in their prospectus they'd be seeding with cash. As long as they trickle the buys, I don't think it will go ballistic. Just up and sideways. I mean I hope it goes vertical but ya know. I doubt it
Discussion
So they will promise the cash equivalent of the demand until they buy enough to satisfy all demand?
I think they're smart enough to realize and watch the charts as they time their purchases. If they are buying large amounts and the market doesn't absorb the buying with some selling, they'll probably just wait it out. I don't think they have a need or desire to smash buy billions. They're obviously layering in buys but I don't think you'll see buying just for buying sake.
That’s why I don’t understand how they will meet the demand. They aren’t going to be able to do that based on day 1 demand.
Yeah we'll see how it plays out but I think they have a better understanding of day 1 demand than we do. In addition, they've probably already got a really good understanding for the recurring demand in the near term.
There is no doubt they do, it just seems impossible to do it at any sort of reasonable level. It would actually be better for them if the price mooned first. They could convert fiat demands into much less of the available supply.
I don't think there's anything in the prospectus that prevents them from buying and selling... So yeah I'd fully expect them to sell spot and nuke the market from time to time
The world has never experienced a strictly scarce liquid asset, and for that reason I believe it will act in a way we just can't predict
I assume they have sophisticated methods to prevent "price slippage". How much capital do you think they are going to deploy into BTC? I mean, even 1% of AUM is roughly 100 billion for them.