Topic: The blackRock Bitcoin ETF (Read 154 times)

pension funds dont day trade, they buy and hoard. so there is not much daily inflow.
many funds just buy up a basket of assets and then internally hold.. then just internally swap shares between their clients who buy in-sell out of categories of assets

....
the reason many people see financial benefit to invest in ETF instead of buy bitcoin direct is this

imagine your salary is $100k (~$72k post tax income) and you want to dedicate 7.5% of your income to buy bitcoin
7.5%=$5.4k = 0.153btc at todays price (1btc=35.4k) leaving you with $66.6k spending money

now imagine your employer put your 7.5% pretax, and employer matched that into etf shares
15%=$15k = shares pegged to 0.424btc at todays price (1btc=35.4k) leaving you with $67.4k spending money

so you have more exposure to more gains and you have a lil extra in your pocket
and you just sit on that 0.424 pegged shares until you retire, instead of 0.153

We have a physical spot Bitcoin etf in Canada. It went live like 2 years ago and it didn’t really have much inflows. Currently it’s something like $1B Canadian dollars. I think it had the most inflows when it went live but since then it went nowhere.

Sure $1B is a lot but it’s in Canadian funds which is more like $750M USD but after 2 years it’s not that much inflows. Even Microstrategy alone buys like $100M worth every month, just one company.

Maybe since it’s a blackrock etf and based on the states it will get more inflows but it’s seems the Canadian one didn’t get much investment from retirement funds.

Yes, that's part of it. Their exposure to Bitcoin isn't the kind of exposure that most of us here are doing. While we have actual Bitcoin, or actual access or control of our Bitcoin to be precise, they do not. Their exposure is limited through a brokerage. Strictly speaking, they don't have Bitcoin. They cannot send whatever Bitcoin they own to anybody anytime. They cannot use them to purchase goods and services. Simply said, what they have are mere numbers.

Well, this isn't the kind of ownership that Bitcoin is all about.

It's their money, it's their choice and if their choices can benefit Bitcoin market, I appreciate it.

Though it is good for Bitcoin market in general and in long term too, I hope that customers of those big companies will gain profit too and those companies will not have bankruptcies in future. Because those companies use their customer money to invests in many assets and in future, soon we will see them invest in Bitcoin through Bitcoin Spot ETFs in USA.

Not your keys, not your coins. Although it's ok if those big companies with big AUM don't mind about it, their customers must know about that risk and consider to buy bitcoin and store it by themselves.

Q&A: Not your keys, not your coins

As long as it's a net positive effect, we'd take it. Most institutional investors know very little to nothing about how bitcoin works can still participate in the Bitcoin economy. It's just interesting that this is the category that some of the investors with the deepest fall under which is why it is a big deal, not just for them but for the rest of the community. At the very least, it's proof that something big is coming and global adoption is near completion.

Yes, it does make sense. For those who are focused-minded investors and don't want to invest directly in Bitcoin but want to take advantage of the volatility, the Bitcoin ETF is for them. They buy contracts instead of real Bitcoin on the chain. So they don't need to maintain their wallet. Therefore, ETFs are a hassle-free investment for them. However, ETF FOMO injects a lot of funds into the Bitcoin market, hence the green chart. Also, Bitcoin EFT is introducing Bitcoin to a lot of investors. So this is positive, of course.

You're right about Bitcoin ETFs as they can be an easy way to invest in Bitcoin for those investors who believe that they won't be able to secure their Bitcoin on their own. Although storing Bitcoin on online exchanges isn't really hard and anyone can do that but investors can't trust the centralized as well as decentralized exchanges as the exchanges can go down or maybe hacked by hackers and in the process they may lose their money which they have invested in Bitcoin and stored in those exchanges.

BlackRock the top investment company and investors trust it so much that once its Bitcoin ETF gets fully approved then the price of Bitcoin will pump a lot as many new investors will invest Billions of dollars in BlackRock Bitcoin ETF and they really won't have to buy and store Bitcoin themselves but will reap the profits if Bitcoin's price grows in value.

Yes, it's strange they had so many years to buy bitcoin and suddenly an ETF appears and they are all so keen on throwing their money at blackrock and others.

I can understand some of them though. You can be a bitcoin loving CEO but getting the company board to vote for bitcoin allocation might take a lot of persuasion. When a big company known for managing billions of dollars stands behind this bitcoin investment it makes things much easier.

The concept of spot ETFs is quite intriguing. In straightforward terms, it could be a game-changer, making it much easier for people to delve into the world of Bitcoin. You won't need to fret about the intricacies of storing and purchasing Bitcoin; it all revolves around those ETF shares, which you can trade much like regular stocks.
What's in it for us? Well, the major players, the institutional investors, might feel more at home with Bitcoin in a notably convenient manner. This could potentially inject more liquidity into the Bitcoin market, which is invariably a positive sign. Furthermore, it's akin to a badge of approval – having a dedicated ETF for Bitcoin could lend further credibility to this digital asset.
However, there are a few potential downsides to ponder. It might attract some speculators who could introduce a tad of turbulence. And, as with anything in the online realm, there's a hint of risk, including the potential for hacking or manipulation.
All things considered, the advantages seem to outweigh the disadvantages.
BlackRock Bitcoin ETF could streamline the entire Bitcoin experience, enhance liquidity, and provide more credibility to the digital gold. So, yeah, it makes quite a bit of sense!
If you have any questions you can contact me via my Discord: https://discord.gg/WyUZV2uP

Yes, it makes sense for those who are not used to trusting decentralisation and who want to invest millions but do not want to take care of their money because if they will take full responsibility, then how can they blame others and how can they get insurance on their money? They need some centralized authority, which should be approved by the government, and then they will invest huge amounts of money and get a lot of exposure from the features of BTC, but they will lose the real advantage that they could have if they kept their money with them.

People just need some trustworthy entity to make a deal, and that's what ETFs are for. It eliminates the decentralisation and anoynmity factor, but indirectly, it would be a benefit for BTC because these ETFs have to buy large amounts of BTC to provide it to their customers.

Which means the demand will increase oversupply and the BTC price will shoot up. And it will be a win for us from all sides because we are the real owners of our assets, we don't have to pay huge taxes on those stocks or shares, and we can withdraw, send, or deposit any amount to our wallet anytime.

They buy shares, stocks rather than buy bitcoin but it's their institutional investor favorite. For me, it does not make sense and I don't want to do this because I know "Not your keys, not your coins" but we can not change them.

They will listen to experts, not us as small investors, not whales. They also can get many warnings, education resources about risk of this but people, entities always have decisions to make from some options they have.

Oh yea, that's true because Bitcoin would have more exposure than it is now. Currently, everyone is just waiting for when will the ETF be approved. I wouldn't want to miss the trend as I am already buttling up with my smart trend

Almost everyone had talked about this ETF and SEC related issues, bitcoin ETF is making the talking about bitcoin here amidst the government agency while bitcoin itself is not the point of discussion, they are only making use of the unique volatility with the bitcoin market price to also incorporate their own shares and and stocks market value, this alone is causing a shift on the market price because bitcoin is getting more rated as everyone look onto the market volatility to determine their state of income for both bitcoin network and other centralized organizations.

 This would make it more convenient for investors who may not know about the technical aspects of buying and storing Bitcoin. By investing in a Bitcoin ETF investors will be able to indirectly participate in the potential price movements of Bitcoin.
This will eliminate the need for investors to set up and manage a digital wallet or deal with exchanges or worry about the security of their Bitcoin holdings and also they don't need to give KYC to exchanges. Like big exchanges ask for KYC.

Well, it is making a lot of sense, I guess otherwise nobody would be vigorously filing for an ETF in SEC...and there are many applications right now just waiting for the final approval. With an ETF one can participate with the growth of Bitcoin without directly owning one. Many experts are now saying that an ETF for Bitcoin can be the next big milestone for it and can push its price astronomically or should I say...to the MOON?

employers offering pension plans can only take employees salary PRE-TAX to invest in regulated investments..
so an employer CANT just take their employees pre-tax pension contribution/allowance to buy bitcoin direct.

however they can invest in nasdaq.. so if a ETF is approved, its on nasdaq, meaning people can invest their pension contributions into the ETF

and a bitcoin spot ETF is the only legit method to invest into something that shadows the bitcoin price, which is why there is a big push for big portfolio investment institutions to become an offering of BTC spot ETF, because the pensions industry is a multi trillion industry ready to have bitcoin price exposure as a possible investment

What I understand from this is that ETF on a stick exchange, would make it easier for investors to gain exposure to Bitcoin without them having the hassle of storing and buying Bitcoin. Do this make any sense?