Topic: what is a spot bitcoin ETF? (Read 162 times)

The explanation is spot on. All the government ever wanted to do was to control the masses and this is not feasible with bitcoin because it's a privacy coin. Bitcoin spot ETF is just a fake version of bitcoin that goes against everything that Bitcoin stands for.

Sometime ago I came across an article that's obviously been sponsored by one of the Bitcoin ETF companies because it gave some lame reasons why people should choose Bitcoin spot ETF over Bitcoin. One of the reasons is that owners of Bitcoin Spot ETF don't need to be wary of getting a wallet or their funds been stolen by hackers because the company is responsible for holding it.

I think I got the best explanation from here
https://www.betashares.com.au/education/bitcoin-etf/#:~:text=A%20Bitcoin%20exchange%2Dtraded%20fund,not%20available%20on%20cryptocurrency%20exchanges.
Basically you buy a Contract that said you own a bitcoin from a regulated market that is controlled by the government, while the government is holding the actual bitcoin and they can do whatever they want with those. You will still get a paper that said you own Bitcoin, and I guess you will still be able cash-out those bitcoin on working days.

Spot bitcoin ETF is not bitcoin or cryptocurrency, it is commodities of stocks and bonds from centralized markets or institutions which value were pegged with the bitcoin market price, for instance if you're buying a bitcoin EFT bond as stock from a commercial counterparts, they will sell to you with bitcoin current market price, after buying then if bitcoin price goes bear you're loosing and if it goee bull you're earnings, bitcoin is used as a market indicators for the worth of the asset you've invested, that's why it's been called bitcoin spot ETF, the main keyword there is the exchange traded funds pegged with bitcoin market price.

I think to understand it you should read this article from Bitcoin magazine. I found it easy to understand than the link shared by Investopedia. I did have the same question and after reading the article I found that it is an open-end fund that can be redeemed or issued just like shares. The price is the spot price of Bitcoin and ETF is traded on all major exchanges.

For an explanation What is a spot bitcoin ETF? I think you can read the reference from the link sent by @ _act_. Now, for one more thing, the difference between bitcoin and bitcoin-cash, if seen from the name alone, is different, meaning don't OP get confused in interpreting it. well, this is the difference, let me try to explain.

The First, when BTC was released, it was in 2009 and BCH was in 2017, and when viewed from the transaction speed, BCH is superior where is the Bitcoin Cash Network. Whyl ike that? because Bitcoin Cash can handle more transactions per second than the Bitcoin network, because transactions tend to be more lower than BTC and and Bitcoin Cash is considered a Bitcoin 'Fork'. and what is unique here is that for BTC there is no such thing as printing new coins while BCH is still possible.

I feel like nobody gave you a clear explanation, so here is a ELI5 explanation:

An ETF is like a company that doesn't do anything other than owning something. You can own shares in an ETF just like any company. The value of the ETF and its shares are determined only by the value of the stuff that it owns because it doesn't do anything else. If the value of the stuff goes up, the values of the ETF and its shares go up. If the value of the stuff goes down, the values of the ETF and its shares go down.

In this case, a Bitcoin ETF owns bitcoins. Suppose the ETF owns 1000 BTC and the ETF issued 1 million shares. If the price of 1 BTC is $30,000, then the value of the ETF is 1000 x $30,000, or $30,000,000. Each share is worth ¹/_1,000,000 of that, or $30. If the price of a bitcoin drops to $25,000, then the value of the ETF drops to 1000 x $25,000, or $25,000,000. Each share is now worth ¹/_1,000,000 of that, or $25.

There is actually more going in an ETF, but those are the basics.

It is called a "spot" ETF because the ETF's value tracks Bitcoin's "spot" price. Some may also call it a "physical" ETF because it owns the actual bitcoins instead of contracts, but that is a little weird because bitcoins are not physical. There are also Bitcoin "futures" ETFs and these own futures contracts.

It's not quite as simple as you described, because that would mean that some company like BlackRock or Fidelity agreed with the US government to provide a service to their clients that would be based on a complete lie. In other words, the SEC will approve company A to launch a spot BTC ETF, that company has already agreed in advance with another company that will do the custody of the purchased BTC, and then company A will actually issue fake shares in the fund and pretend that it bought BTC on the market.

To me personally, it does not look even remotely realistic in a country like the USA, because business there is still something very serious, and companies worth trillions of $ would not even exist if they cheated their clients in the way you describe.

Fortunately, Bitcoin cannot be faked regardless of what anyone thinks on the subject, but it can be manipulated to some extent by those who have enough power to do so. Let's remember the guys from the BTCtrash fork and their attempt to take the throne and where they are today.

You got it right, BTC ETF is like a hard fork version of real BTC just like LTC, and BCH you mentioned above. And these new ETFs of BTC will have different and unique names even there is that one BTC ETF that has chose the ticker of BRRR like for Bitcoin it is BTC and they selected for there Pegged BTC fake ETF as BRRR.

TBG, the big and small difference are here.
BTC                                   ETF BTC
Decentralized                     Centralized
Provide anonymity              Fuck Anonymity
Hard to manipulate             Easy to manipulate
Provide full control             Fuck control

I might be wrong at some points but i hope you will find more useful answers here and try to read other's members reply too even if they provide you links to read.

I do cover this part on the next statement that you omitted on my whole post. He is really missing the Bitcoin utility such as holding and complete control but I’m talking about the gains on my definition of investment experience since Bitcoin Spot ETF main target customers are those traditional investors that scared on risk of crypto technicalities.

Just like other members have said.
They are funds that trades on exchanges which primarily tracks bitcoin index.

According to BM, recently there has been many ETF seeking for approval from the SEC but it has been rejected with SEC sighting inadequate protection of those ETF to investors.
Source:What is ETF in crypto?

One of those YouTubers put it well. They said spot bitcoin ETF is the government creating fake bitcoins so that they can steal and I will add control the real ones. I couldn't agree more. That is what it is, that is how I see it. In the short term it may seem to increase bitcoins price in the short term because we would see traditional investors pump in a lot of money into the crypto market but in the long term they know their end goal - "control the real bitcoins." I do not care how the big institutions try to paint it, most of us in the bitcoin community know this unfortunately there is nothing we can do about it.

The question has been answered. What he is saying is that is bitcoin different from bitcoin spot ETF just as bitcoin cash is different from bitcoin. The answer is no, although bitcoin spot ETF is different from the real bitcoin, but it should not be compared with how bitcoin cash is entirely different from bitcoin. With the explanation above, OP will understand the difference between bitcoin and bitcoin spot ETF.

You must search what is ETF then what is Bitcoin Spot ETF.

The market has many Bitcoin Futures ETFs already but Bitcoin Spot ETF has yet been approved by SEC in the USA. Weeks ago, we had a first Bitcoin Spot ETF in Europe but in the USA, no single Bitcoin Spot ETF approved.

Europe’s first spot bitcoin ETF is going live


bitcoin-Cash, what did you imply by writing this?

Is it Bitcoin Cash, a Bitcoin fork?

Bitcoin Cash, is it what you implied?

The investment experience is not the same with having the real bitcoin which gives you the complete control over tour bitcoin, bitcoin spot ETF is centralized. To have complete control, what to go for is still bitcoin on a self custody wallet.

Although it is true that more people will be exposed to buying bitcoin and it will help in bitcoin adoption.

It’s a paper Bitcoin being sold on a stock exchange. It’s not real Bitcoin but it’s price is pegged on the actual price of Bitcoin which means the investment experience is still the same. You just missed the utility of Bitcoin. ETF is little just a financial tool for non crypto people ride to Bitcoin investment.

This is somehow good since not all people can’t use cryptocurrency especially the oldies that is afraid to venture out on blockchain technology. Buying a paper Bitcoin on stocks is can unite us to the rest of the world that afraid to use crypto in terms of investment experience.

Read about it clearly from investopedia:

https://www.investopedia.com/investing/bitcoin-etfs-explained/

With bitcoin spot ETF, you are not buying bitcoin, you are buying the assets traded on traditional market which is having the same price with bitcoin on the spot market.

The companies that offer you the asset buy bitcoin before they offer customers the traded funds.

What is a spot bitcoin ETF?
Is it an aspect of bitcoin, a part of bitcoin (like coexisting with bitcoin ) or it's entirely something different from bitcoin just like bitcoin-Cash?

Please house I need a clear explanation, am lost even with the little information I have read about it online it's just not very clear to grasp.