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I think what we need to acknowledge is that there will come a point when there is almost no supply for sale, versus insatiable demand. If the ETFs sell shares today on the expectation that they can shore up their BTC reserves tomorrow, they will find the price has completely run away. In 24 hours.

It will be not unlike GME. And the solution to that “problem” was simply disabling the “buy” button.

I suspect the same will happen here. ETFs will disable cash creates until markets “stabilize” while selling will remain available.

We’ve seen this movie before.

mrclownworld 2y ago

Remember, these ETFs all use a single broker (they don’t shop around) and they all reserve the right to choose and suspend their pricing model at will. And now they won’t allow any redemption which would allow arbitrage to balance the price globally.

It’s going to be fucking wild watching the next three years

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Discussion

nobody 2y ago

Wild. Agreed. I can’t wait.

mrclownworld 2y ago

Wall Street hasn’t met an asset they can’t co-opt and Bitcoin hasn’t met a fractional reserve custodian it hasn’t blown up. It’s going to be WILD

Sikto 2y ago

It will be.

BitcoinSandy 2y ago

It is already