Bitcoin Price Thread

long said:
I recently watched a video that said the ETFs don’t actually have to buy BTC immediately when you purchase a share of the ETF. It said they have like 30 days or something like that. Is that true?
More...
I can't say for certain but on Twitter there are lots of accounts that follow the daily flows and they report down to the last Bitcoin how much is bought and sold. As far as I know only one ETF publishes their address so anyone can see how much Bitcoin they hold so that should provide some proof but I have no idea about all the others. Here is an example of one of those posts.

 
ph1l said:
Retail traders buying spot bitcoin ETFs have no effect on the number of bitcoins the ETFs hold. The ETFs buy bitcoin when authorized participants cause the ETF to issue new shares.
More...
how exactly does it work as compared to STOCK ETF? Buying ETF on exchange does not create new units, just changes hand , Creating new units and increasing AUM means ETF after getting the new money commitment has to go and purchase new Bitcoins, correct
 
traderjo said:
how exactly does it work as compared to STOCK ETF? Buying ETF on exchange does not create new units, just changes hand , Creating new units and increasing AUM means ETF after getting the new money commitment has to go and purchase new Bitcoins, correct
More...
Yes, that's the way the system is supposed to work.
https://www.nasdaq.com/articles/bit...n-sachs-and-others-as-authorized-participants
An AP is typically a large bank or investment firm designated by an ETF issuer to issue and redeem shares of exchange-traded funds (ETFs).

APs are pivotal in the ETF market, ensuring liquidity by creating and redeeming ETF shares according to market demand.

This process helps maintain ETF prices closely aligned with the net asset value of the underlying assets. These entities procure the required underlying assets to create ETF shares and receive a package of shares in return, referred to as a creation unit.
More...

Stock ETFs use an in-kind model where the authorized participants deliver the underlying assets to allow the ETFs to issue new shares.
https://finance.yahoo.com/news/hidden-winners-behind-bitcoin-etfs-111500475.html
Under the in-kind model, the authorized participants buy each of the individual assets held by the ETF in the exact weighting held by the fund and deliver them to the ETF issuer. The issuer then creates shares of the ETF and sends them to the authorized participants, who turn around and sell them on the open market. When more people are selling the ETFs than buying them, the whole thing happens in reverse: Authorized participants deliver ETF shares to the issuer who provides the underlying assets in return.
More...

But the bitcoin ETFs use a cash model to allow a more diverse set of authorized participants.
But the spot Bitcoin ETFs work differently. When there's excess demand for the ETFs, authorized participants provide cash to the issuer. The issuer is then responsible for acquiring Bitcoin to create new shares.

Using a cash model opened the door for tightly regulated banks to become authorized participants.
More...
 
NoahA said:
I can't say for certain but on Twitter there are lots of accounts that follow the daily flows and they report down to the last Bitcoin how much is bought and sold. As far as I know only one ETF publishes their address so anyone can see how much Bitcoin they hold so that should provide some proof but I have no idea about all the others. Here is an example of one of those posts.

More...
I follow that one too. It tells you how much BTC the funds bought/sold but it doesn’t tell how much BTC is held per share. I’ve never analyzed stocks in depth so I don’t know how to find out on a daily basis how much money is flowing into an ETF and then compare it to the actual spot BTC purchases. I don’t know if that info would be useful but it would be interesting to see it plotted on a chart.
 
the entire space is a fraud, what do you think these ETFs were made for you to make money on or for the issuers to capitalize on the naive sheep?

The ponzi scheme is running on fumes. Collapse might be even closer than we think.


It's painfully obvious sell-off is just around the corner. The only hope there is they urgently approve the ETH etf, run ethereum to new yearly highs above $4000, and then the rug gets pulled.

Stocks might have topped as well. Things could get real ugly real quick.
 
A collapse of crypto is unfortunately going to affect other financial markets even though many in the REAL financial market have nothing to do with this " fluff"
 
SunTrader said:
Why such vitriol ....... if you have no position? Or do you? :sneaky:
More...
Given so much passion, he must either have a position or be so concerned about innocent people getting screwed. If it is the latter, I wonder when he will understand that the real enemy is The Government, Government Spending, and the Federal Reserve. If he was well informed, can he really conclude that Tether and Bitcoin failing is good for the average person? Does he really think the best solution is to not have fiat challenged and allow the government to be 100% in control of the spending? Does he not even realize that this same fiat printing is what is responsible for millions of lives being killed by the American war machine? The only way to be well versed in all these subjects and conclude that there is nothing wrong with the current system means you are completely complicit in all of these crimes against both US citizens and innocent people all around the world.
 
You must log in or register to reply here.
Back
Top