A few industry experts on BTC seem to think a spot ETF will have a negative impact on BTC. I understand that it’s not owning actual BTC. But if it drives up the price, that alone increases the interest in BTC and could drive adoption and hyperbitcoinization…right? Am I missing something?
5 sats \ 2 replies \ @0000 26 Jun 2023
People are mostly just talking noise and don't have a clear picture of what is going on within the Bitcoin network itself. ETF's will allow direct 401k and pension plan exposure. It will allow institutional investments in a way where the volatility of Bitcoin does not blow a massive hole in the company's P&L.
I am no expert on SEC filings but I was reading that one and if I understand things correct the ETF will consist of a basket of shares. So 1 basket is something like 40,000 shares. I believe "Share" is the unit of measurement that has the equivalent value of one Bitcoin.
It is really rigid in that it seems like there is no ability to divide anything up. They cant purchase fractions of a Bitcoin and the shares cannot be sold for fractions of a Bitcoin so its whole Bitcoins or more.
If this is how everything is set up I don't think anyone has seen anything yet. This ETF has 1 year to be approved and between that time Bitcoins price has to start moving up in order to support the supply demand.
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0 sats \ 1 reply \ @notgeld 26 Jun 2023
Agreed. We may look at it as a way to scale Bitcoin.
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0 sats \ 0 replies \ @0000 26 Jun 2023
Ultimately any news is good news for Bitcoin. That is a meme but its a meme with a lot of truth in it. Bitcoin is unstoppable so at best the noise will slow down progress, which I expect to happen because there is no way we get to mass adoption without extreme resistance. At the same time maybe it happens so quick resistance has no time to act. Only time will tell.
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0 sats \ 0 replies \ @notgeld 26 Jun 2023
No. Is it bad to sell cigarettes and alcohol for Bitcoin? No. Let people sell "investment products". Normies like them so much.
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0 sats \ 0 replies \ @birdeye21 26 Jun 2023
An ETF is the necessary bridge needed to usher bitcoin mass adoption into a fiat world.
Good for awareness, but bad for those who don't understand self custody.
Paper bitcoin is a big problem already, but ETFs will grow that problem by orders of magnitude.
Bitcoin comes with a lot of growing pains.
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