reply on: Should Fidelity’s Bitcoin ETF Trade at a Discount or Premium? \ stacker news ~bitcoin

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72 sats \ 2 replies \ @kepford 19 Mar \ on: Should Fidelity’s Bitcoin ETF Trade at a Discount or Premium? bitcoin

I'm not all that knowledgeable about tradfi. I mean, I'm probably more knowledgeable than the average Joe but my guess is that most on SN are as well. That said, lets say that Fidelity did screw up their custody in house and lost at least some of their fund holders bitcoin. Would they not be liable to their customers legally to make them whole? I don't know the answer to this question but I suspect the answer is yes.

Same question goes for Coinbase. If they screw up and lose one of the other funds bitcoin what is their legal responsibility.

And yes, bitcoin fixes this none of this protects against the U.S. government seizing the bitcoin just like they could take over any corporation based in the U.S. These are all risks. But given a future where the U.S. enforces contract law I wonder how that would go down.

33 sats \ 1 reply \ @kr OP 19 Mar

well in the case of Coinbase, they custody $193 billion of digital assets for clients, which is more than the entire value of their business.

90 sats \ 0 replies \ @kepford 19 Mar

I should have mentioned that. I'm not saying they could make people whole but rather they would be on the hook to do so. This is a HUGE risk for anyone letting anyone custody their bitcoin.