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0 sats \ 3 replies \ @DiedOnTitan 6 Jun \ parent \ on: How much bitcoin owned by ETFs is too much? bitcoin
Things will have to get pretty bad for #4 to happen. Blackrock now would have a lot to lose. They have deep ties (lobby dollars) into the government and they are massively increasing AUM, and I don't think they want to have to explain to all of their clients why they got rugged on their watch.
It is much safer to have your keys in cold storage than an IOU on an ETF. I don't understand these "I don't trust myself" plebs who don't want self custody. It's weak.
I do however understand people who have a retirement fund and want exposure to Bitcoin without taking the tax and penalty hit for withdrawing their funds.
Well, you cannot rug the ETF holders as they don't have any bitcoin to rug to, So in my head it plays like that - companies are hoarding BTC using the customer's money and when the customer sells they don't. So they end up with a lot of BTC that nobody can withdraw. I'm just wondering if they can somehow hide it in the reports.
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when the customer sells they don't
That's not how it played out with GBTC. So much cash left when the ETFs opened, that they had to sell 300,000 Bitcoin to cover.