Quote 1:...the accessibility of Bitcoin investments to general public will be ubiquitous.
Quote 2:hedge funds get their name because they hedge their positions on the market
example go long on oil futures and long on airlines stocks
1 if oil goes up let the oil futures run in profits cut the airlines stock
2 if oil goes down cut the futures and let the airlines stock run in profits how you hedge in bitcoin world?
Originally hedge funds used to hedge, as in your example, but nowadays any strategy goes. Being long in BTC is a possibility. The problem however, is that they normally want to buy financial products within a strict legal framework. The Coinlab deal is a first step towards making this possible,
the ultimate goal would be a Bitcoin ETF.
"'While silver can get to $15 or $20 before it's all said and done, the actual launching of the silver ETF could mark a short-term top for silver,' added Peter Grandich, noting that the silver ETF could represent a
'buy the rumor, sell the news' trade." /.../ "Analysts are also warning about potential confusion over the tax structure of precious-metals ETFs. Under current tax law, long-term gains from the sale of silver are taxed as 'collectibles' like artwork. Therefore, if held for more than a year, gains on the silver ETF would be taxed at a maximum rate of 28%, compared with 15% for so-called long-term gains on stocks. If sold in less than a year, gains are taxed as ordinary income.'
- Ben Jones. Metals Dip On Profit Taking, ETF Worries. April 04, 2006.
http://moneyandmetals.blogspot.com/2006/04/metals-dip-on-profit-taking-etf.htmlQuote 4:The gold ETF is being proved to be a sham, not convincingly so, but enough to anyone harboring a suspicious mind. Stories abound within ETF’s regarding shorting gold via futures, buying 10 cents worth of gold per dollar held, lack of transparency, unaccountability under the false guise of security concerns, and avoidance of SEC requirements enough to earn a formal investigation. Eventually, we will learn that on a good day, a fractionally managed gold ETF is right on target with their reality. My uglier view is that ETF’s will morph into non-producing hedge firms, simple queer adjunct skeletal illicitly controlled shams linked to the hedged mining firms themselves, whose certificates are fully mixed, those valid vaulted very real with those leased vanished never to be seen again. For smart people to trust the ETF offerings is evidence of utter complete stupidity in my book. Jim Turk’s original suspicions might have been met with calls of competitive bias, but no more. His concerns have all been borne out as authentic. He is a true gold patriot. For the precious metal community to embrace the upcoming silver ETF is beyond my comprehension.
Such trust reminds me of the Iraq War and calls of weapons of mass destruction. Now Iran is a nuclear threat. Have we learned anything about disinformation? How intelligent is the gold community? Don’t confuse zeal and stubbornness for intelligence and craft. If Fanny Mae launched an ETF for housing investors, would we trust it? A credible argument can be made that the hedged gold institutions (within the establishment of the goomba World Gold Council to manage the gold ETF) is akin to
the mafia managing the lending operations for the Teamster’s Union retirement fund. How is that working out? The streetTRACKS gold ETF (GLD) will have a similar fate someday, in managed receivership by some official steward.
- Jim Willie CB. Why USFed Hikes, Unspoken. February 16, 2006
http://www.freemarketnews.com/Analysis/65/3825/2006-02-16.asp?nid=3825&fb=1&wid=65&ntyp=EMAhttp://economicrot.blogspot.com/2006_02_01_economicrot_archive.html#114037421219143602Quote 5:It's like fractional reserve banking....
one bar "owned" by 10 different entities.
Bottom line is if you own precious metal ETF's you own PAPER!
- thinkiam Jul 15 01:14 PM Comment on an article "Warnings to Precious Metal ETF Investors - Buyer Beware!"
http://seekingalpha.com/instablog/121744-mark-anthony/13311-warnings-to-precious-metal-etf-investors-buyer-beware Nice call.
Bitchick: there's no more buying going on because the masses understand only one thing: the price is going Up UP UP, hop on the train before it's too late!
Which is obviously not the case while a bubble deflates.
Price is at a very healthy level considering how shitty is the current infrastructure and at what price BTC was traded one year ago. Just chill.
