My first instincts on hearing about this ETF are that its a bad idea.
because the idea behind bitcoins is that you don't need derivatives to represent bitcoins, you just own the 'real' bitcoins. Why let someone else ever hold your bitcoins when you can do it your self. This is also why I don't like Ripple gateways and bitcoin transactions in the ripple network and why you don't need a bank.
If we want to attract more people into bitcoins we need easier ways to get actual bitcoins, not paper certificates.
People supporting the ETF seem to be mainly saying it will be great for bitcoins because it'll attract big money. Maybe bitcoins shouldn't be in too much hurry to attract big money. No need for impatience. I distrust ETFs because of things I've heard about GLD and SLV. In the small print of those ETFs it says something along the lines of 'we don't have to redeem any metal and can pay you in fiat'. I've heard people with shares in GLD own 100 times more paper than there is real metal. Net effect of these ETFs is that the money supposedly going to investing in gold is actually being diluted 100 times into paper.
If the WinkleBros can proove they have the bitcoins backing the ETF then it makes it better I guess, but I'm still a bit uneasy about the idea myself.
Not everything has to be done because it will be "better". This is a free country, bitcoins were designed in part to allow more freedom in money, if these people want to use bitcoins in this manner it will not hurt you so why not let them try to make a little money this way? Or are you just jealous you didn't think of it and/or have the resources to pull it off first?
Peter, no I'm not jealous of thinking of an idea I would have been against in the first place, its a bit ridiculous of you to suggest that. The freedom of bitcoins comes because the quantity can't be controlled by any person or organisation. Unless the Winklebros ETF can demonstrate it backs every share of its ETF with real bitcoins then I won't trust it because it will be a way to tamper with the number of bitcoins. If you don't understand this concept I suggest you do some research.
this all goes back to the "Peer driven market" - aspect
i'm going to bet that the Winki dink bros are betting that most people have
no idea or even care about the physical backing of the assets just as with Gold or Silver -{i'm talking about a lot of those 401(k) holders}
the interesting part becomes the Technology factor , it of course all works with Gold or Silver , but will it work in a strongly Peer driven market such a Bitcoin.
or will their hand be forced to move in a direction that leads them to develop systems that prove/disprove this.
i'd say the success/failure will be a result of this aspect primarily .
)
Why would you completely nullify the entire reason of having bitcoins by buying them through an ETF?
