Let's "white board" this issue.
Blackrock, Fidelity, Grayscale, ARK and Valkyrie all met with the SEC about their spot #Bitcoin ETFs a few day's back..
The momentum is tilting to inevitable, and the only question is what happens when $BTC enters price discovery mode.
If this is a cash-in cash-out product (a pump and dump attempt manipulation, similar to gold) what happens to all the #BTC that #Grayscale hold? Does this force them to liquidate to fund their ETF?
Also, does this mean that anyone holding other financial products also need to liquidate & take the capital gains hit if they want in?
Hard to say, but with tens of trillions of investable assets being unlocked, at a minimum, just a 1% allocation would be hundreds of billions...
But this ETF is not bitcoin, its paper prododuct bet and infused manipulation... but it adds mainstream legitimacy and will motivate people to maybe spend 5 minutes actually researching it.
Well, as for selling one asset to buy another, that is just like any other ETF or security. Sell AAPL, buy IBIT, etc.
As for GBTC, I am unsure what the mechanism will be and I expect that is a main point they are working on with the SEC. But would love for someone with more knowledge to weigh in on that.....
My gut feeling is that its an elite attempt at manipulation to gain control... which won't work long term.
What do you think?
