Home Bitcoin News Bitcoin ETF Great for Arbitrage But Have lot of Silly Things to it

Bitcoin ETF Great for Arbitrage But Have lot of Silly Things to it

Bitcoin ETF Great for Arbitrage But Have lot of Silly Things to it

Micheal Saylor expressed: “There are approximately 218,000 financial advisers in the United States managing assets in excess of $110 trillion, and as of this week they can allocate client assets to Bitcoin via ETFs which integrate with their business model & information systems.”

Community response:  Why buy ETF’s when crypto is already available? Centralization? Yes, and none of that money will go into the underlying asset? Why are you bullish on this?

Market Makers are going to have to hold serious amounts of BTC, if they wish to remain Delta Neutral.  I’m of the belief the ETF’s are faulty products, yet great opportunities for arbitrage but things like expirations, fees and Contango make them silly.

Crypto not regulated. ETF’s are. A financial advisor won’t recommend an unregulated asset in a portfolio. ETFs no matter what they are investing in they pump a lot of additional money on whatever it is. Since there are bitcoin ETFs coming out we know immediately that millions of more dollars are getting dropped on bitcoin.

And the ETF’s will be limited on the number of Futures Contracts they are permitted to own by their respective exchange limits. Their Prospectus’s appear to afford them the ability to purchase other assets that have a high correlation to BTC.

Now that there is a Bitcoin ETF, hopefully my financial advisor will learn how to manage my portfolio as this is a long term investment for my future.

Be sure they explain the risks because at the moment only futures ETF’s are permitted. They come with many more caveats than a spot price ETF.

So, if in the next few years, their clients demand 5% of their money allocated to BTC and 80% of BTC the supply is illiquid making every dollar invested potentially 10-30x to BTC market cap do we have chart that shows when the best time to buy and sell is?

It’s probably better to use the Canadian ETFs than future ETF. We have several to choose from.

Can I invest in the Canadian BTC ETF through American discount brokers like Schwab and Fidelity?

A simple look at its sharpe ratio would clear that up. A 1% bitcoin & 99% cash portfolio still outperforms the S&P while only taking a 1% portfolio risk! These big sharks understand portfolio management; their sweet-spot will be in the 1-5% allocation range.

The Sharpe Ratio is a financial metric often used by investors when assessing the performance of investment management products and professionals. It is about taking the excess return of the portfolio, relative to the risk-free rate, and dividing it by the standard deviation of the portfolio’s excess returns.

Conceptually, this provides a measurement of the portfolio’s outperformance per unit of the portfolio’s volatility. All else being equal, portfolios with higher excess returns or lower volatility will show higher Sharpe Ratios, and vice-versa.

 

 

 

 

 

 

 

 

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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