reply on: Blackrock Already Holds 180,000+ BTC \ stacker news ~charts_and

10 sats \ 5 replies \ @gmd 6 Mar \ on: Blackrock Already Holds 180,000+ BTC charts_and_numbers

Why are people giving money to evil empire Blackrock when you can put money in HODL and BRRR???

I know some folks have a retirement account already that’s allocated to the ole S&P 500 and if they have to have a 401k or IRA, might as well redirect some of that money to the Bitcoin etf.

0 sats \ 1 reply \ @gmd 6 Mar

yeah but might as well pick the ETF with the coolest ticker name :)

99 sats \ 0 replies \ @ZezzebbulTheMysterious 7 Mar

The answer is fees. Formally, they call this the expense ratio. This is the amount that the ETF shaves off the top every year to pay for managing these funds.

However -- unlike gold, storing bitcoin offline costs nothing really. Keys are relatively small and sufficient entropy from 24 words will last a long time.

The professional custody services used by the ETFs -- Coinbase Custody and Gemini Custody, do however, charge fees. This is in return charged to consumers + management fees of the ETF.

One of the biggest problems with GBTC was the expense ratio of 1.5% -- 1.5% of your coin went to Barry. With Larry only charging 0.15%, you can see why people told Barry to sell their coins so they could go give them to Larry.

Over a long time scale, the fees will eat into your principal. Bitcoin has no dividend, so your principal (denominated in sats) will decrease, but you wont notice because the market reports the price denominated in $usd.

You are best to go with the ETF that has the lowest fees, if this is where you wish to store capital. Look for the one with the lowest fees.