The price development story here is not the effect that purchasing for this fund will have, but the opening of more funds like this and other derivative instruments. The affect on price will happen on a much longer timeline than many of you are thinking.
perhaps.
but this announcement really should be looked at as the 2nd fund to announce this strategy next to Winklevii.
it's possible that "speculation" could result in a sooner ramp than you think. especially since we've had this nice long consolidation period of 5-6 months now.
charts are looking primed.
I will concede only that what is not known is not priced in. What is known, most importantly, what is known by the 'smart money' is already priced in.
And I beg to differ that these are equivalent strategies. The ETF will be trading in and out of Bitcointhat is, whenever they have a reliable means to do so. But the trust will not. People will be trading in and out of the trust, but it will be a limited pool of coins that won't change substantially. They have stated that initially each share would represent .1 Bitcoin, and that this would slowly go down over time as they fractionalize the shares.
You are wrong, they said they will take their expenses out of the .1 but they did not say that new investors would dilute the initial investors holdings of Bitcoin. They will buy .1 Bitcoin for each share in the fund which will be diluted by expenses.
Initially, each BIT share will represent 0.1 bitcoins, but the trust will not generate any income and will regularly sell/distribute bitcoins to pay for on-going expenses, so the amount of bitcoin represented by each share will gradually decline over time.