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But how? Are etfs required to sell btc proportionate to etf shares sold?

this is fiat finance business... some things are "legal" that are not moral

almost certainly they are betting on the demand for sell to be at some level on a statistical average and so they are not going to neccessarily maintain balances that *should* be there and at some point it can happen that more withdrawals are demanded than they actually have in UTXOs

that's why you don't use them, if you understand fiat finance, you want to save in bitcoin, you buy and hold bitcoin in keys you control physically

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Discussion

Comte de Sats Germain 1y ago

That would be good for bitcoin. I'm just worried its locked up in there forever, never comes out, then gets converted into a bitcoin bank in the future. If the etfs are fractional reserve-ing on the sly, then that will hurt them more than bitcoin in the long run.

I wouldn't dream of buying an etf, bitcoin or otherwise. Mega systemic risk, I don't approve.

Comte de Sats Germain 1y ago

Like, what if people sell etf shares but the fund or fund owner keeps the btc in preparation for loaning it as a bank, instead of selling it on chain. That would be bad.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

faking ownership of bitcoin is always a problem

many exchanges have done this and the real stock of bitcoin in the market and on offer is actually unknown because they are all lying ass dogs

this is why, when the actual demand gets hard, the price moves fast, because much of what was stopping the price moving up, previously, was paper, hot air.

Comte de Sats Germain 1y ago

I'm not sure that's actually a problem, if it causes banks to blow up. Banks are predators... I hope the lie about their reserves then panic and burn, and let the btc run free in the process

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

something that might help to calm your mind about this

if they lose the coins, good, our coins become worth more

if they sold the coins beforehand, and fail because they did that, whatever, that's why the price didn't move

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

yeah, they aren't gonna lose the bitcoins, or lock them up, same thing i guess

more likely they are gonna rob people by playing the margin game, the rule in fiat finance, how little can you actually hold so you reduce your downside risk while avoiding the bankrun risk

totally missing the point of what it's for, but ok, it's good that bitcoin has finally reached the point where the suits are trying to make money out of it

that means we are big biznis