Thank you for the summary. You seem to know a lot more than I do about this.
Do you have any idea if there is a right for the buyers of the Bitcoin ETF to ever request their Bitcoin be withdrawn? Here in Europe, in some countries at least, if you purchase Gold on paper only from a Bank you can request the physical Gold be given to you. No idea if that is an ETF or Gold Stocks or what ever.
define buyers
under examples of blackrock ETF
blackrock trades with AP(authorised participants(agents/brokers)) not end investors(customers/citizens)
lets use "jane street group llc" as a example AP with blackrock
blackrock total holdings is (as of yesterday)
~$10m (~227btc)= 400,000 shares total
=10 baskets(40,000share ~22.7btc per basket)
janestreet can and does own shares, as of yesterday 12,355 shares totalling ~$329k
a basket is 40,000 shares totalling ~$1m (pegged to ~22.7btc)
meaning janestreet only has ~33% of a basket
the AP(jane street) needs to accumulate 40,000 shares total to get a voting right to dissolve/redeem those shares off market. and have blackrock signal to coinbase to unlocked reserves from coinbase custodian to then be sold OTC for cash to then give to janestreet cash. whereby blackrock has less coin in custody and less shares to offer.. but jane street would be given cash not coin
so in short no jane street cant get coin this way
jane street wont self custody or be delivered actual bitcoin via blackrock or coinbase as custodian
dissolving/redeeming shares is not a method to get bitcoin from blackrock. nor is it even the best way for jane street to even cash out to then buy bitcoin elsewhere
also to note
if it ever were a case of "in-kind" redemption its not like end use investors/citizens can ask for 1 share worth of coin either.
..
dissolving shares (redemption) is not in the best method of getting in and out of blackrock. whereby needing to buy another 27645 shares to get a voting right full basket to then dissolve/redeem shares to unlock coin custody just to then cash out.. they might aswell just sell 12,355 shares to another willing AP within blackrock. to whomever wants to take control of the shares and use cash from sell to buy coin elsewhere / enter another market
