Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Could it be that the rises of April 30 and/or May 3 were due to the expectation of BIT trading on OTCQX, and the current dump is due to the disappointing volume there?
Or perhaps they were due to the 100 M$ Circle investment nws, and disappointment with that?
Shares of BIT and COIN and PBP etc. are IOUs for bitcoins that are held by the respective companies. The question is why can't institutional funds invest in actual bitcoins directly, but using a middleman to avoid the risk of sending money to foreign/unregulated exchanges.
Indeed, there is a one-time fee when redeeming or issuing the shares, plus something like an administration fee of 2% for each year that the bitcoins sit at Greyscale.
So BIT does provide something that you don't get by buying raw bitcoins: perpetual inflation.
http://np.reddit.com/r/Buttcoin/comments/34assy/the_list_of_things_that_are_going_to_save_buttcoin/
Or perhaps they were due to the 100 M$ Circle investment nws, and disappointment with that?
Can't [ a big investment ] fund strike a private contract with a sufficiently reliable middleman, who would buy the bitcoins on the exchanges or other places, shouldering the risks, and then sell them to the fund?
yeah like SecondMarket, in the future COIN and other ETF's and etc.Shares of BIT and COIN and PBP etc. are IOUs for bitcoins that are held by the respective companies. The question is why can't institutional funds invest in actual bitcoins directly, but using a middleman to avoid the risk of sending money to foreign/unregulated exchanges.
Why does [ the GBTC page ] say approximately 0.1 bitcoin, and not exactly 0.1 bitcoin per share?
Fees.Indeed, there is a one-time fee when redeeming or issuing the shares, plus something like an administration fee of 2% for each year that the bitcoins sit at Greyscale.
So BIT does provide something that you don't get by buying raw bitcoins: perpetual inflation.
So, now that Silbert and GBTC has fallen a little flat, who is the next Messiahtm in the pipeline?
http://np.reddit.com/r/Buttcoin/comments/34assy/the_list_of_things_that_are_going_to_save_buttcoin/