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Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 32379. (Read 26712727 times)

legendary
Activity: 2380
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1CBuddyxy4FerT3hzMmi1Jz48ESzRw1ZzZ
legendary
Activity: 1168
Merit: 1000
Buyer contacted me on localbitcoins for an in person meetup (probably tomorrow).  I'm in a smaller town, so doesn't happen often (once like 6 months ago).  He's been following the action and wants in.   Grin

Word slowly getting out..  more media attention the better (and they'll be a ton if we bust through the ATH).
legendary
Activity: 1168
Merit: 1000
Engage seat belt.

That chart is lookin hurtin for a squirtin'.

legendary
Activity: 1400
Merit: 1013
When a Basket is redeemed, this often means that bitcoin will be delivered in redemption, however the trust reserves the right to pay out in fiat Dollars instead of bitcoin in the value of the bitcoin at the time of the redemption request.
In other words, they've left themselves room to sell more ownership in Bitcoins than they actually have, just like what happens with every other financial product.

Wall Street wants a monopoly on this kind of fraud, so they make it a felony for everybody except themselves.
legendary
Activity: 2380
Merit: 1823
1CBuddyxy4FerT3hzMmi1Jz48ESzRw1ZzZ
legendary
Activity: 1204
Merit: 1002
Gresham's Lawyer
It doesn't mean anything as it's not actually approved yet. But when it does get approved, it means institutional investors and firms will have an easy way to throw funds at BTC without actually holding BTC. (Not sure why they'd want that, but hey.)
Of course as more shares are bought, Winklevii will have to purchase additional BTC to be represented, and of course as shares are sold they'd liquidate. Not sure *exactly* how it works, but I think that's the general gist. In the end, purchases of this ETF will (not-quite-directly) contribute to increased demand, and also the opposite.

I'd be curious to get a precise answer on this for my own curiosity.  I've heard that the fund won't buy more coins, but just make profit and payout on the increased value of the 100k coins.  I've also heard that they will buy more coins as they get more investors.  And now with someone else in this thread, apparently they might sell coins?

Does anyone actually know? Does this EFT or whatever force them to buy/sell/hold/eat/hump coins or can they do whatever they want with them?

Here is the S-1
http://www.sec.gov/Archives/edgar/data/1579346/000119312513279830/d562329ds1.htm

The section on creation and redemption of shares explains it, but the basics are that more bitcoin can be bought or sold to fund or defund the ETF depending on the activities of the "Authorized Participants" who can do this in "Baskets" of 50K Shares of the WBCT (Winklevoss Bitcoin Trust)  These Baskets of 50K shares will be equivalent to a declining number of actual bitcoin (over time) as bitcoin will be sold to pay the costs of maintaining the trust.

When a new Basket of 50K shares is created (because the Authorized Participants are selling a lot of them to their customers) the trust will buy more bitcoin.  When a Basket is redeemed, this often means that bitcoin will be delivered in redemption, however the trust reserves the right to pay out in fiat Dollars instead of bitcoin in the value of the bitcoin at the time of the redemption request.
donator
Activity: 2772
Merit: 1019
It doesn't mean anything as it's not actually approved yet. But when it does get approved, it means institutional investors and firms will have an easy way to throw funds at BTC without actually holding BTC. (Not sure why they'd want that, but hey.)
Of course as more shares are bought, Winklevii will have to purchase additional BTC to be represented, and of course as shares are sold they'd liquidate. Not sure *exactly* how it works, but I think that's the general gist. In the end, purchases of this ETF will (not-quite-directly) contribute to increased demand, and also the opposite.

I'd be curious to get a precise answer on this for my own curiosity.  I've heard that the fund won't buy more coins, but just make profit and payout on the increased value of the 100k coins.  I've also heard that they will buy more coins as they get more investors.  And now with someone else in this thread, apparently they might sell coins?

Does anyone actually know? Does this EFT or whatever force them to buy/sell/hold/eat/hump coins or can they do whatever they want with them?

this thread contains relevant information regarding this.

EDIT: maybe post #79 could be a good starting point

EDIT2: it also contains a bit of a battle between NewLiberty and DrGregMulhauser Wink
hero member
Activity: 518
Merit: 500
It doesn't mean anything as it's not actually approved yet. But when it does get approved, it means institutional investors and firms will have an easy way to throw funds at BTC without actually holding BTC. (Not sure why they'd want that, but hey.)
Of course as more shares are bought, Winklevii will have to purchase additional BTC to be represented, and of course as shares are sold they'd liquidate. Not sure *exactly* how it works, but I think that's the general gist. In the end, purchases of this ETF will (not-quite-directly) contribute to increased demand, and also the opposite.

I'd be curious to get a precise answer on this for my own curiosity.  I've heard that the fund won't buy more coins, but just make profit and payout on the increased value of the 100k coins.  I've also heard that they will buy more coins as they get more investors.  And now with someone else in this thread, apparently they might sell coins?

Does anyone actually know? Does this EFT or whatever force them to buy/sell/hold/eat/hump coins or can they do whatever they want with them?
sr. member
Activity: 448
Merit: 250

That it is making its way to the market.

That the twins have bought something like one hundred thousand bitcoins - at what price, we don't know - and are about to cash out some of them.

Still kind of confused as to what this means for the market exactly.


It doesn't mean anything as it's not actually approved yet. But when it does get approved, it means institutional investors and firms will have an easy way to throw funds at BTC without actually holding BTC. (Not sure why they'd want that, but hey.)
Of course as more shares are bought, Winklevii will have to purchase additional BTC to be represented, and of course as shares are sold they'd liquidate. Not sure *exactly* how it works, but I think that's the general gist. In the end, purchases of this ETF will (not-quite-directly) contribute to increased demand, and also the opposite.

EDIT: I'm not sure what the above poster meant by "about to cash out." Filing or approval in no way means Winklevii will be selling any or all of 100k coins at market the instant they are approved. They have to own the coins that the shares represent. They don't get to just sell them when ETF is approved, that makes no sense and then they wouldn't have an ETF. They hold the coins as specified in the filling. As more investors pile in they'd have to purchase more coins. Or the opposite. You get the picture.
sr. member
Activity: 280
Merit: 250
hero member
Activity: 826
Merit: 508

That it is making its way to the market.

That the twins have bought something like one hundred thousand bitcoins - at what price, we don't know - and are about to cash out some of them.

Still kind of confused as to what this means for the market exactly.
sr. member
Activity: 280
Merit: 250
Gox and China still moving up slowly.

legendary
Activity: 1904
Merit: 1037
Trusted Bitcoiner
legendary
Activity: 1904
Merit: 1002

It means it was filed (as the status field says).  In other words, nothing we didn't know months ago.
hero member
Activity: 924
Merit: 1000

That it is making its way to the market.

That the twins have bought something like one hundred thousand bitcoins - at what price, we don't know - and are about to cash out some of them.

I thought they needed the 100k to represent the value of the ETF.
hero member
Activity: 672
Merit: 500

That it is making its way to the market.

That the twins have bought something like one hundred thousand bitcoins - at what price, we don't know - and are about to cash out some of them.

Ok cool.
legendary
Activity: 2380
Merit: 1823
1CBuddyxy4FerT3hzMmi1Jz48ESzRw1ZzZ
legendary
Activity: 4242
Merit: 5039
You're never too old to think young.
I have never used stimulants but I have heard good things about stuff like aderal and other meth type stuff. But fuck that, not for me.
Our "road aspirins" were mostly just dexedrine, preludin, ionamin, etc., commonly prescribed diet pills in their day.

The meth was only for special occasions like stadium shows.

You have to remember though that meth wasn't the same in those days. It was synthesized from phenyl-2-propanone, a darkroom chemical that produced both dextro-rotatory and levo-rotatory methamphetamine. Now it's made from pseudoephedrine, which is sold in the dextro-rotatory form and produces dextro-methamphetamine.

I may joke about kids nowadays not being able to handle their crystal meth, but I do realize today's meth is twice as strong as what we did back then.

You're wise to take a pass.
hero member
Activity: 841
Merit: 1000
I can't take it anymore..... so many good news.

ps: Keep in mind ladies that we rallied to 266 only on Cyprus speculations and some minor news coverage last time.
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