Topic: 2021-02-26 yahoo! - World's first bitcoin ETF soars past $500m in AUM (Read 103 times)
March 10, 2021, 06:33:19 PM
It's not over yet. Now well-known world leaders are interested in the topic of bitcoin and are actively using the corresponding digital money. We should wait some more time and then we will be able to observe a new record.
February 28, 2021, 09:07:37 PM
~snip
An ETF is very good. Bitcoin investment trusts similar to Barry Silbert’s Grayscale does not allow investors to redeem the asset behind the derivative. This traps your money in that market because you can only get your money back by selling the asset. It might be okay if the market is liquid.
In an ETF, you can redeem the bitcoins this represents.
Investors do have the ability to get the Bitcoin equivalent in their investments but the problem is will these investors have the ability to pull out their money on their own especially when the market is about to go down? These people chose Bitcoin ETF as an alternative for directly trading in a crypto exchange for one reason and that is because they are still or don't have any knowledge how to trade directly in the crypto exchange so maybe they still have the same mindset as a lot of newbies that in order for them to make money is all they do is sit back and watch their money grow.
No, Grayscale’s bitcoin trust does not give the investors the ability to redeem for the underlying asset. This requires another type of license and the approval of the SEC. Redemption is only possible on an ETF and none of the applications for an ETF has been approved in America presently.
Redemptions of shares are not currently authorized
Source https://grayscale.co/wp-content/uploads/2019/01/BTC-Trust-Fact-Sheet-January-2019.pdf
February 28, 2021, 04:12:09 PM
Will this be really a good news for the crypto industry or not? Because for me this might be a double-edged sword where the Bitcoin ETF is just confirming that we have a lot of demand and the other part is this Bitcoin ETF entered in the market on a bullish season where everything is up right now. The risk for this investors is more compared to the people who have entered it when Bitcoin was just below 20,000$ meaning the 590$ million assets under management they are handling right now is without any margin of safety and they are relying on Bitcoin going up above the current market value for their investors to have a profit. If everything will fail this could be a multi-million dollar disaster waiting to happen for these investors.
I don't agree. The risk for investors was always there. The risk was greater in 2012, when I first invested in cryptocurrency. Back then Bitcoin was legal only in a handful of countries. A lot of my friends even told me that my investment is going to become completely worthless in a matter of few months. Now I would say that the situation has improved a lot. Bitcoin is legalized and regulated in most of the countries and the investors enjoy some level of protection. The prices may be high, but it can go much higher in the long term.
Exactly what are you disagreeing about with what I have said? Because my whole point about my post is that they even have higher risk by entering the market in this way where prices are already high, they aren't exactly the ones who have been patient during the bear market but they are the ones who have participated in the market where it already has went up. If you are talking about the risk of holding Bitcoin in general I think we all know the big risk here since Bitcoin is one of the most volatile assets out there yet there not all risks are built equally because like I said earlier there are better entry points for an investor to buy Bitcoin as compared to what investors are doing right now where the market is already consolidating in a higher level.
February 28, 2021, 08:44:16 AM
Will this be really a good news for the crypto industry or not? Because for me this might be a double-edged sword where the Bitcoin ETF is just confirming that we have a lot of demand and the other part is this Bitcoin ETF entered in the market on a bullish season where everything is up right now. The risk for this investors is more compared to the people who have entered it when Bitcoin was just below 20,000$ meaning the 590$ million assets under management they are handling right now is without any margin of safety and they are relying on Bitcoin going up above the current market value for their investors to have a profit. If everything will fail this could be a multi-million dollar disaster waiting to happen for these investors.
I don't agree. The risk for investors was always there. The risk was greater in 2012, when I first invested in cryptocurrency. Back then Bitcoin was legal only in a handful of countries. A lot of my friends even told me that my investment is going to become completely worthless in a matter of few months. Now I would say that the situation has improved a lot. Bitcoin is legalized and regulated in most of the countries and the investors enjoy some level of protection. The prices may be high, but it can go much higher in the long term.
February 28, 2021, 07:01:05 AM
~snip
An ETF is very good. Bitcoin investment trusts similar to Barry Silbert’s Grayscale does not allow investors to redeem the asset behind the derivative. This traps your money in that market because you can only get your money back by selling the asset. It might be okay if the market is liquid.
In an ETF, you can redeem the bitcoins this represents.
Investors do have the ability to get the Bitcoin equivalent in their investments but the problem is will these investors have the ability to pull out their money on their own especially when the market is about to go down? These people chose Bitcoin ETF as an alternative for directly trading in a crypto exchange for one reason and that is because they are still or don't have any knowledge how to trade directly in the crypto exchange so maybe they still have the same mindset as a lot of newbies that in order for them to make money is all they do is sit back and watch their money grow.
February 28, 2021, 01:39:31 AM
Will this be really a good news for the crypto industry or not? Because for me this might be a double-edged sword where the Bitcoin ETF is just confirming that we have a lot of demand and the other part is this Bitcoin ETF entered in the market on a bullish season where everything is up right now. The risk for this investors is more compared to the people who have entered it when Bitcoin was just below 20,000$ meaning the 590$ million assets under management they are handling right now is without any margin of safety and they are relying on Bitcoin going up above the current market value for their investors to have a profit. If everything will fail this could be a multi-million dollar disaster waiting to happen for these investors.
An ETF is very good. Bitcoin investment trusts similar to Barry Silbert’s Grayscale does not allow investors to redeem the asset behind the derivative. This traps your money in that market because you can only get your money back by selling the asset. It might be okay if the market is liquid.
In an ETF, you can redeem the bitcoins this represents.
February 27, 2021, 02:43:28 PM
When buying those ETF shares I hope investors were well aware of the risks and I wouldn't be as pessimistic as you thinking this could unravel in some form of multi-billion dollar disaster.
ETF's been one of the most awaited bitcoin-based financial investment vehicles and I don't think this is gonna disappoint us.
Don't forget that everybody buys bitcoin at the price they deserve
ETF's been one of the most awaited bitcoin-based financial investment vehicles and I don't think this is gonna disappoint us.
Don't forget that everybody buys bitcoin at the price they deserve
February 27, 2021, 10:23:53 AM
Will this be really a good news for the crypto industry or not? Because for me this might be a double-edged sword where the Bitcoin ETF is just confirming that we have a lot of demand and the other part is this Bitcoin ETF entered in the market on a bullish season where everything is up right now. The risk for this investors is more compared to the people who have entered it when Bitcoin was just below 20,000$ meaning the 590$ million assets under management they are handling right now is without any margin of safety and they are relying on Bitcoin going up above the current market value for their investors to have a profit. If everything will fail this could be a multi-million dollar disaster waiting to happen for these investors.
February 26, 2021, 04:48:42 AM
Quote
The world's first bitcoin exchange traded fund is off to a hot start. The Purpose Investments bitcoin ETF now has more than $590 million in assets under management after launching just one week ago.
The ETF was the first physically settled Bitcoin ETF to win approval and began trading in Canada on Thursday. It now gives investors a more direct way to invest in bitcoin relative to other closed-end funds like the popular Grayscale Bitcoin Trust (GBTC) and a less direct way than outright owning bitcoin through an individual wallet.
Purpose Investments Chief Investment Officer Greg Taylor told Yahoo Finance that the inflows are proof of pent-up demand among investors looking for a more familiar way to gain exposure to cryptocurrencies.
The ETF was the first physically settled Bitcoin ETF to win approval and began trading in Canada on Thursday. It now gives investors a more direct way to invest in bitcoin relative to other closed-end funds like the popular Grayscale Bitcoin Trust (GBTC) and a less direct way than outright owning bitcoin through an individual wallet.
Purpose Investments Chief Investment Officer Greg Taylor told Yahoo Finance that the inflows are proof of pent-up demand among investors looking for a more familiar way to gain exposure to cryptocurrencies.
https://finance.yahoo.com/news/worlds-first-bitcoin-etf-soars-past-500-million-in-assets-under-management-213407975.html
And despite the recent market turmoil, bitcoin investment vehicles like this one keep eating fiat brrr money and continue to build a true long-term investment recognition for these sort of assets. Purpose Investments CIO Greg Taylor told Yahoo Finance that the inflows are proof of pent-up demand among investors looking for a more familiar way to gain exposure to digital assets like bitcoin.
Jump to: