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 itās 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 itās presented as mutually exclusive. Either this, or that.
Like I stated earlier in the thread, it really depends on your risk profile, what youāre 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. Itās an unknown.
Itās 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.
š my b! I didnāt 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 itās 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 individualsā¦
One thing I forget to mention, when btcās market cap is 10T the price volatility will decrease significantly.
