Most of these ETFs hold their bitcoin at Coinbase so Coinbase would have to collude with the ETFs to be fractional reserve. Unlikely IMO
Im actually glad Blackrock does not self-custody. They are holding their bitcoin at Coinbase so I have at least some faith their ETF is backed by actual bitcoin. But there always is a chance of fuckery going on.
It’s because few would buy a share if it were priced at the bitcoin price of $43k.
And it were say 1/1000th of the bitcoin price, the correlation would eventually diverge because of the management fee.
It’s the same as GLD or SPY. Those ETFs are not priced at exactly the same level as gold or the S&P 500.
This is really important if you are concerned about the bitcoin price in the short run. Because of the ridiculous 1.5% management fee, there is going to be mass dumping of GBTC shares (which represent 600k+ bitcoin) and Grayscale as I understand it will then have to redeem large amounts of shares and sell the bitcoin representing those shares.
My guess is most of the GBTC holders will buy bitcoin or another ETF with lower fees, but there may be a time lag and some GBTC holders may not invest back into bitcoin at all. nostr:note1hchem5eyr8mtyngp0vre376vnkux54yct7al0wzc9v94pe7mahmsh4nelk
The $ ETF price is irrelevant. The ETF price will move the same % as bitcoin moves minus the management fee.
I think we should be asking why the fuck the government is so damn interested in our emails. 20+ legal requests a day for information? Leave us alone.
nostr:npub1excellx58e497gan6fcsdnseujkjm7ym5yp3m4rp0ud4j8ss39js2pn72a has a history of ridiculous forecasts and I’m 99.9% sure this will be another one.
An increase in the bitcoin market cap of the GDP of the US in “days/weeks”? Cmon man.
Markets almost always do what people expect it not to do in the short run.
I would like to copy and paste this every time I hear that bitcoin isn’t backed by anything.
“Although bitcoin could go up to $20,000, it can go to $30,000. It’s on its way to zero — somewhere between zero and 200. It’s a utility token for criminals, terrorists, money launderers, tax evaders — they’ll always find some use for it. So it might not go all the way to zero. It’s clearly a bubble — it looks like the second biggest bubble in history after tulip mania.”
Jim Rickards, December 2017
Yes, and people are not mining bitcoin to fund wars. They print up dollars out of nothing for that.
Yes. He knows a lot about a lot but I don’t think he really ever got bitcoin. That is part of the reason he promoted Doge coin and also why he proclaimed himself “Diamond hands” in reference to bitcoin and then proceeded to sell most of Teslas bitcoin.
Is he on shrooms again? No way he hasn’t heard of it.
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You may be right. I usually dont include the lost bitcoin in the value the network. I understand there is a possibility it may be worth several $trillion this year as well, especially if this ETF demand does start pouring in.
Has anyone heard anything from Nick
Szabo? I always thought he was either Satoshi or in a group of folks who were Satoshi.