449 sats \ 2 replies \ @kepford OP 13 Jan \ parent \ on: ETFs are Just a Custodial Abstraction of Bitcoin bitcoin
What I think is that the ETF is more like a gold note. Legally the ETF manager you buy from is required to acquire btc. This is enforced by a social layer. Not a cryptographic one. Banks that issued gold notes could cheat. ETF managers could as well. Governments could take the gold in the banks. They could also take the BTC on Coinbase.
Is see the two as very similar. That is if I am understand them correctly. However this illustrates to me the wisdom of self custody.
Stay humble, stack sats
write
preview
10 sats \ 1 reply \ @Undisciplined 13 Jan
I agree. One notable difference between gold notes and the ETF is what investors are entitled to.
If you caught someone forging gold notes, they would be required to compensate you in the amount of gold specified.
If you catch an ETF manager cheating, they would be required to compensate you in fiat (and probably less than the amount you'd need to actually buy the quantity of Bitcoin they were supposed to be holding).
reply
26 sats \ 0 replies \ @kepford OP 13 Jan
Yep. Good point.
reply