Replying to Avatar CappyNate🍁

Means Blackrock starts buying BTC. They need to own some Bitcoin when the ETF launches. ETF's don't launch empty of holdings.

So they start accumulating BTC pre-launch, get the creation/redemption mechanism running. It's a sign they're confident the ETF will approve soon.
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Jor 2y ago

Heavily agree with that.

But don’t you think they’ve been quietly accumulating bitcoin for the last 6-12 months?

I figured that’s why the price was being suppressed - so they could stack more

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CappyNate🍁 2y ago

Maybe. But they don't need too many for launch nor does their entry price matter too much. The creation/redemption mechanism handles all the extra buying/selling pressure in real time. Passing gains/losses through to unit holders (not affecting Blackrock).

The major flows happen AFTER the launch, via creation/redemption. New buyers drive price, which drives new unit creation, which buys more BTC via the ETF mechanism. ETF's holdings constantly fluctuate.