well said.
and leverage is the equivalent of a short on the USD. nice pair trade...
edit: this was brought up in the IMF paper by Plassaras.
Topic: One Unforseen Aspect of ETF (Read 583 times)
GIGANTIC LEVERAGE
My broker will allow me to leverage with up to x4 on US ETFs & Stocks (there are liquidity constraints, but those are pretty loose) . Assuming the Winklevoss ETF falls into this category, right off the bat, I can leverage my BTC position 4 times what it normally would be. Now, you also must understand that I have other stocks in my portfolio. I can in turn use THOSE as collateral, for even MORE leverage.
The amount of BTC I could potentially buy with just one fairly well-funded IRA is astounding. Wish you were an early adopter and could have exposure to thousands of coins? When this ETF launches, that's your chance.
My broker will allow me to leverage with up to x4 on US ETFs & Stocks (there are liquidity constraints, but those are pretty loose) . Assuming the Winklevoss ETF falls into this category, right off the bat, I can leverage my BTC position 4 times what it normally would be. Now, you also must understand that I have other stocks in my portfolio. I can in turn use THOSE as collateral, for even MORE leverage.
The amount of BTC I could potentially buy with just one fairly well-funded IRA is astounding. Wish you were an early adopter and could have exposure to thousands of coins? When this ETF launches, that's your chance.
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