Nam Sardar: Question: when the paper ETFs come in for Bitcoin, what will determine BTC daily price? The price at which physical (withdrawable BTC) changes wallets or the price of paper contracts, like Gold? If BTC isn’t extracted from CEXs, whats to say the exchange even has it?
I do think that there will be an effort to force most people to hold BTC by proxy. This will give the banks a new reserve asset to rehypothecate, a new lease on life. Of course real maximalists stand in opposition to this, but the bankers had the legal system on their side.
That’s why I don’t believe that BTC will escape this fate, and an EFT is certainly part of it. Only true crypto currency, private and fungible can resist this against the force of law. Eventually you’ll see all those who want to see crypto currency succeed, switch to XMR etal.
Shouldn’t this just be the logical answer, even for maxis who are cheering for the ETF?
People are stubborn. It may be that cynical insiders within the current system abandon ship to XMR before maxis do.
With the bitcoin ETFs right now, they are going off of bitcoin futures on CME globex. They have not approved spot bitcoin trading ETFs yet (actual bitcoin)
And bitcoin futures on CME Globex are settled in USD only, there is no actual delivery of bitcoin taking place, like corn futures, or oil, for instance. It’s all paper basically.
So unless futures trading volumes far surpasses physical settlement volumes, it’s safe to say physical daily price, as the dominant price indictor will determine market price.
I would think so but I’ve also wondered about this. When the CME futures came online at first and market the 20k top for a while I wonder which one was the tail wagging the dog or what. Lots of dynamics at play, whales using the futures to hedge their real bitcoin positions etc.
They are moving fast in the fore-mentioned ideology. Proxy, exposure, ETF. This is a real scenario Nam.
You got to know the big boys are going to play games just like they do with silver and gold.
They will do their best and non KYCD accounts will be the only ones safe.
For clarity, bitcoin ETF mimics the price of the digital currency, allowing investors to buy into the ETF without trading bitcoin itself.
Investing in a bitcoin ETF cuts out any issues of complex storage and security procedures required of cryptocurrency investors.
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