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Bitcoin futures ETF's already exist - I'm not convinced that a spot price ETF is any huge breakthrough.
by initplus 3y ago
Bitcoin futures ETF's already exist - I'm not convinced that a spot price ETF is any huge breakthrough.
- sowbug 3y agoFutures ETFs own no Bitcoin. Spot ETFs would.
- paxys 3y agoPeople buying into the ETFs don't own the Bitcoin either way, so doesn't really make a difference to them.
- sowbug 3y agoYour original question was about price. Institutional demand in an asset generally reduces its open supply. That should affect the price.
- paxys 3y agoIf someone buying into the bitcoin ETF takes away the same transaction from Coinbase then the net result is the same.
- jcliff 3y agoOn the contrary, it makes a significant difference. Futures have to roll over monthly and there's costs associated with that. Depending on the slope of the futures curve, the costs can be high (10+%). Holding spot bitcoin solves this problem and makes the fund more palatable to advisors and institutions.
- initplus 3y agoTrading in derivatives still affects the price of the underlying asset. Sellers of BTC futures contracts are hedged by holding BTC.