‘watered-down bitcoin’ for institutional investors

jonald_fyookball

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Core dev leaves me neg feedback #abuse #political

Quote from: RodeoX on April 09, 2014, 03:16:34 PM

Quote from: jonald_fyookball on April 09, 2014, 03:03:05 PM

Quote from: RodeoX on April 09, 2014, 02:16:56 PM

As soon as their investors understand bitcoin I think they will see that this service does nothing they could not have done themselves. Why not just buy some bitcoins then buy some T-bonds?

Storing btc securely is a value-add.

That's a good point. They are also insured, I assume. But if you understand the technology then you may consider unshared control of your private keys to be even more secure than trusting a third party. If you don't understand, then farming out security might be a worthwhile investment.

True. Also institutional investors it starts getting more complex , you need multisig, who in the institution
Will hold the keys,etc...maybe better for them to use a financial holdings company.

jonald_fyookball

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Quote from: odolvlobo on April 09, 2014, 03:25:26 PM

The fact that they split 50-50 is stupid. The fund only works for someone that wants to invest the same amount of money in BTC as they invest in treasuries. How many people will want to do that? Are they also going to provide the entire range of funds with mixes from 90-10 to 10-90?

Ah come on... Accept it for what it's worth and be grateful it's helping adoption.
Should resse's peanut butter cups start offering different mix ratios of peanut butter and chocolate? Cheesy

odolvlobo

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The fact that they split 50-50 is stupid. The fund only works for someone that wants to invest the same amount of money in BTC as they invest in treasuries. How many people will want to do that? Are they also going to provide the entire range of funds with mixes from 90-10 to 10-90?

RodeoX

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The revolution will be monetized!

Quote from: jonald_fyookball on April 09, 2014, 03:03:05 PM

Quote from: RodeoX on April 09, 2014, 02:16:56 PM

As soon as their investors understand bitcoin I think they will see that this service does nothing they could not have done themselves. Why not just buy some bitcoins then buy some T-bonds?

Storing btc securely is a value-add.

That's a good point. They are also insured, I assume. But if you understand the technology then you may consider unshared control of your private keys to be even more secure than trusting a third party. If you don't understand, then farming out security might be a worthwhile investment.

jonald_fyookball

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Core dev leaves me neg feedback #abuse #political

Quote from: RodeoX on April 09, 2014, 02:16:56 PM

As soon as their investors understand bitcoin I think they will see that this service does nothing they could not have done themselves. Why not just buy some bitcoins then buy some T-bonds?

Storing btc securely is a value-add.

RodeoX

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The revolution will be monetized!

As soon as their investors understand bitcoin I think they will see that this service does nothing they could not have done themselves. Why not just buy some bitcoins then buy some T-bonds?

jonald_fyookball

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Great idea.

5thStreetResearch

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Quote from: leopard2 on April 09, 2014, 06:12:49 AM

Quote from: 5thStreetResearch on April 08, 2014, 07:17:43 PM

Quote from: leopard2 on April 08, 2014, 04:34:28 PM

it means that 50% of a huge amount of money flows into BTC

great news, good luck to the shorties Cool

Im sure less than 1% of the mined bitcoins are short, there is not many means of doing so.

well, many people are not really short but sold a la baisse, hoping they can buy back in lower

that will also lead to quite some squeeze if price goes up instead

That isn't a squeeze. Squeeze's occur when people have no option but to cover a position to avoid a margin call. People hoping to buy at lower prices just means prices will continue to trend down until there is an explicit reason to buy.

g4c

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Quote from: odolvlobo on April 08, 2014, 04:21:27 PM

It's a stupid idea that only muppet clients would invest in. The better alternative to a 50-50 mix is to invest half the money and keep the other half in cash.

Keep the other half in silver rounds I would say.

franky1

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Quote from: Bizmark13 on April 09, 2014, 07:30:28 AM

What's the advantage of buying bitcoins and US treasuries through Pantera vs. buying them directly? Or investing in their bitcoin-only offering vs. just buying bitcoins off an exchange?

because pantera are tying them up with an imaginary bow, and lots of imaginary glitter, then charging a premium. the same is said for expensive restaurants. why pay over $100 for a bit of lettuce and a carrot.. "its the service and experience you are paying for"

cbeast

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Let's talk governance, lipstick, and pigs.

Quote from: odolvlobo on April 08, 2014, 04:21:27 PM

It's a stupid idea that only muppet clients would invest in. The better alternative to a 50-50 mix is to invest half the money and keep the other half in cash.

Some early adopters developed a portfolio consisting of bitcoins, hookers, and blow.

Bizmark13

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What's the advantage of buying bitcoins and US treasuries through Pantera vs. buying them directly? Or investing in their bitcoin-only offering vs. just buying bitcoins off an exchange?

ryanmnercer

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Quote from: pdawg on April 08, 2014, 04:10:59 PM

U.S. Treasurys,

*Treasuries

RenegadeMind

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THINK IT, BUILD IT, PLAY IT! --- XAYA

One way or another, half of that portfolio is going to zero. Tongue

leopard2

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Quote from: 5thStreetResearch on April 08, 2014, 07:17:43 PM

Quote from: leopard2 on April 08, 2014, 04:34:28 PM

it means that 50% of a huge amount of money flows into BTC

great news, good luck to the shorties Cool

Im sure less than 1% of the mined bitcoins are short, there is not many means of doing so.

well, many people are not really short but sold a la baisse, hoping they can buy back in lower

that will also lead to quite some squeeze if price goes up instead

waxwing

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Quote from: pdawg on April 08, 2014, 04:10:59 PM

The volatility in bitcoin is sometimes more than 200%, said Pantera Capital Management Chief Executive Dan Morehead.

To offset that volatility, Pantera has an offering that gives its investors a 50-50 mix of bitcoin and U.S. Treasurys, he said at the Inside Bitcoins conference in New York on Tuesday.

http://blogs.marketwatch.com/thetell/2014/04/08/watered-down-bitcoin-for-institutional-investors/

Curious ... are institutional investors so incompetent that they don't know how to manage a portfolio of assets with different risk profiles? If they find a specific asset more volatile, can they not simply reduce their exposure? (e.g. buy 50% as much!)

I'm sure a lot of the hedge fund types are mostly looking for optionality. For example buying premium with long expiries, or going long vol. There is almost nothing like that out there, certainly not with any liquidity.

5thStreetResearch

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Quote from: leopard2 on April 08, 2014, 04:34:28 PM

it means that 50% of a huge amount of money flows into BTC

great news, good luck to the shorties Cool

Im sure less than 1% of the mined bitcoins are short, there is not many means of doing so.

leopard2

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it means that 50% of a huge amount of money flows into BTC

great news, good luck to the shorties Cool

pdawg

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Quote from: Cryddit on April 08, 2014, 04:24:59 PM

But treasuries pay better than cash.

i like tax free muni bonds better

Cryddit

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But treasuries pay better than cash.

Topic: ‘watered-down bitcoin’ for institutional investors (Read 1329 times)