100 sats \ 2 replies \ @nikotsla 19 Mar \ on: Beginner question - who is selling their bitcoin bitcoin_beginners
Those ETFs made another layer, you could trade X amount of BTC but it will never move in the blockchain, it's like paper btc for me. Is in that place (not in the blockchain) that most of these trades works. It could be like a fractional reserve bank... just 1% of real BTC could be responsible of a big chunk of the market.
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0 sats \ 1 reply \ @oliverweiss 19 Mar
Don’t ETF funds need to have underlying Bitcoin in theirs holdings?
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0 sats \ 0 replies \ @nikotsla 20 Mar
Yea, but... who watch the watchmen? the auditory isn't every min/hours, and... there is a kind of "consolidation" process so it's not "automatic", in that time frame the price de-peg from the underlying asset and you start playing their game, the game they own and know.
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