The first bitcoin-linked ETF is scheduled to make its NYSE debut officially on Tuesday morning.
The 75-day period during which the sec could object expires at midnight today. and on wednesday the invesco bitcoin strategy so, lets discuss how these new funds differ rejected in the past, and what you actually now, it’s worth noting that these will not in the world, just the first on us equity exchanges. rise in value when a given cryptocurrency falls and vice versa.
But these will be the first us exchange listed products. market like a stock and is available to regular investors. already, but they are only available to qualified at a price that doesn’t match the underlying cryptocurrency. gary gensler – the chairman of the sec has trading on regulated futures exchanges as the sec has previously shown concern about well, unlike
The other bitcoin etf’s that funds are based on futures contracts and were has said provide “significant investor protections.” the answer is that this type of product is futures already trade on regulated u.s. futures this is really just a repackaging of this that it can be traded on an equity exchange, it is not really revolutionary, and to the if something goes
Wrong on a regulated futures and they are better able to step in investigate and intervene. as the coins trade in a lot of different locations, if something went wrong on an unregulated with a futures-based etf, the issue of custody the futures are a bet on the price change store bitcoins, so the sec doesn’t have so who might want to use etf’s to invest in bitcoin?
Well financial advisors (for example) might exposure to the asset class, without trading now, while the sec sees these products as than trading in the underlying bitcoin spot give investors the same returns as they would get by just buying bitcoin. takes your money and uses it to buy shares if you buy one of these bitcoin etf’s – instead of the money will be used as margin
At a futures an interest-bearing account that contains money market securities. – which is a bet with a counterparty that if bitcoin goes up in price, more money is falls in value, some of your money goes to you might then wonder if a structure like that the price of bitcoin will rise, does and the answer is that they do, but there on the other side of your futures trade)
Won’t just be making that bet. so that person – an arbitrageur – will buy right now, bitcoin is trading at around 60k and then they will have to post around $20k the futures exchange to sell bitcoin futures short. now as i mentioned earlier, the etf puts up the arbitrageur must instead put up the full the arbitrageur is also exposed to the security retail investors who
Buy the etf are exposed a registered u.s. commodity futures exchange – which seems a lot better. the answer is that they will only do it if need to be able to charge you somehow for for the risk they are taking in dealing with so, the way that futures work, and thus futures-based paying someone else to store the underlying product for you. over time futures-based etf’s
Can make and divergences in the prices of the futures with the products that they track. this means that longer-dated bitcoin futures this can lead to lower returns – or losses their soon to expire contracts (the ones that so, when you look at the price of bitcoin at a premium of around 8% above the price of bitcoin. so buying this etf right now means paying on top of
That the etf charges a management the question then is why would anyone buy we discussed the problems of storage a while your family would complain… and i guess even fire regulations about filling up your bitcoin, on the other hand – used to be a you can buy actual bitcoins on brokerage platforms coinbase or you can even trade bitcoin futures on a us regulated exchange.
So, while the sec believes bitcoin futures than actual bitcoins, these new etf’s are if you found this video interesting, you will fat finger trading errors, which starts out
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Bitcoin on The Big Board – The Bitcoin ETF By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-10-18T174512+0000endTimestamp2021-10-18T175827+0000}