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47 sats \ 5 replies \ @standardcrypto 29 Aug \ parent \ on: Bitcoin: Boring Times Will End econ
"very few people (if anyone) can actually demand redemption of their paper IOU bitcoin certificates for real bitcoin."
sell ETF, transfer to trad bitcoin exchange, buy bitcoin, withdraw to cold wallet.
This can be done in a week, even large quantities.
Much easier than with gold in the GLD etf.
So I don't think we're apples to apples with this comparison.
Invest Accordingly :)
Yes, and what you describe can also be done with gold ETFs and while it sounds nice, in practice it does not happen.
Large investment firms, RIAs, sovereign wealth funds, pension funds and the like often cannot hold a physical commodity (per their own rules) or do not want to do so even if they legally could. They purchase into these ETFs and cannot/will not/do not redeem to purchase underlying.
But yes, it is easier for a pleb like you and me to do this with the ETF, but I imagine we already hold real bitcoin and not ETFs in any meaningful qty. For example, the Wisconsin Pension Fund that holds over $160M in bitcoin ETFs is not going to be holding spot bitcoin anytime soon :)
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Fair enough. I think a quote from Jameson Lopp is probably applicable here as well:
"Unless you're a professional trader, you're likely wasting your time looking at the BTC price chart, trying to understand it.
In 2013 everyone thought bitcoin was mooning due to the Cyprus crisis. Years later we learned it was Wences orange pilling his Silicon Valley buddies."