Very clearly. The games that will be played will make FTX look honest.
Discussion
And the masses will think BTC is like any other investment, and be rugged, until they self custody. Planned. And easy money for the BlackRocks. Why is it so hard for people to take ownership of BTC?
I imagine they want a custodian they can blame/sue if it goes south
Self custody means they gotta look in the mirror 🪞
Fidelity will self custody.
Fidelity will do it right.
Tell me about Fidelity. Why are they different. Regardless, I guess the point is, the ETF ain’t BTC. I’m sure Fidelity won’t back each ETF BTC with an actual BTC?
Read their application.
Why are you sure?
I haven’t read. Maybe I’m wrong. I just don’t trust the ETFS.
This string of Neanderthals clearly needs to read the docs to understand more. (I’m head Neanderthal as I started the post).
😂
That’s fine. Every investment comes with a risk assessment. For some, the tax savings that can be had by placing an ETF in a registered account is worth that risk.
Also, I think a lot of people conflate an unregistered exchange, or other custodial situation, with a btc spot etf.
They are two very different things.
And it really depends on how the spot etf is structured.
The SEC forcing all of them to be cash in/cash out is going to cause significant pain for the issuers, as they will incur price volatility risks as an intermediary. While they will attempt to profit on this arbitrage, surely some will wind up offsides and go bust because of it.
Not your keys, not your corn.
Maybe.
I agree with the statement not your keys not your corn, but it’s not as black and white as that.
There are tradeoffs and risks with both.
The point I think that gets missed a lot of the time is that it’s presented as mutually exclusive. Either this, or that.
Like I stated earlier in the thread, it really depends on your risk profile, what you’re willing to take on, and what you are most comfortable with.
The more people buying bitcoin the better, imo. And a lot of the world will never hold physical btc, and to believe that they will is not something I currently ascribed to.
If it takes the approval of a spot btc etc, that holds 1:1, to get my 75 year grandmother on board, I have absolutely no problem with that.
The risk profile of a commodity fund that is strictly cash in/cash out without any in kind exchange is unique to bitcoin. It’s an unknown.
It’s why I said maybe, no?
Just pointing out that the bitcoin etf situation is unique and risk profile unknown. maybe if you want your grandma to have some bitcoin, a better solution would be to create derivative keys and sell it to her directly. :-)
To think these ETFs are good for our grandparents investing into bitcoin is foolish. These etfs are designed for the issuers to find profits in the arbitrage opportunities, and option markets, not as some safe haven for dumb money.
We will see.
Hey, easy on the grandma dumb money. My grandma knew her shit.
😂 my b! I didn’t mean your grandma! She can prob hold her own keys though! Or join a multisig setup with you. Or you could give her a derivative key set, or some other method of not needing the ETF.
Honestly the only real reason I can think of for the ETF is for younger people to hold in their ROTH-IRA to avoid cap gains taxes.
Agree. This will be a retirement account run like no other. If it’s a true 1:1 reserves, none of us are bullish enough. None.
And for old people with high net worth. Avoidance of cap gains is huge.
How does it make sense for old people with high net worth? Roth IRA has contribution limits, requires earned income, and 5 year minimum holding period. Kinda pointless for older high net worth individuals…
One thing I forget to mention, when btc’s market cap is 10T the price volatility will decrease significantly.
I have a few coworkers that have bitcoin on exchanges and when I talk to them about self custody they act like it would be too hard, when I offer to help they get Leary and ask what's in it for me, I say nothing I'm just trying to help you, they don't understand the asset they seeking paper gains is my only conclusion
It’s a new world for them; self custody & personal responsibility. If they have zero technical skills an exchange could actually be safer. CashApp would be my recommendation for them as it’s close to self custody & is kind of mainstream. Coinbase is a honeypot trap. It will survive for a while IMO but will be an epic explosion at some point.
