The ETF is being made too big a deal of at the moment. The last ETF to get approved was (I think) copper. Copper's been around for millions of years. Bitcoin's not even ten yet. Bitcoin ETF gets rejected? So what?
I'm amazed that most people think it's a slam dunk for approval -- and soon. Some ETFs take years for approval as it is; this is an asset class that didn't exist 10 years ago!
I personally don't care, but it might be nice just for the positive press.
True, but there are downsides. I think it'll encourage more and more bad practices among investors and institutions/brokers/exchanges. Increasing amounts of investors will buy securities rather than BTC. We know how that can end.
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Leverage financialization also improves liquidity, but it does so artificially.
In the negative context, it means liquidity is improving but its coming from the bad kind of leveragepaper claims to an asset that arent backed by the asset itself, or circulation credit as economist Ludwig von Mises calls it, says Long.
The Wall Street exec went on to point out that fractional reserve banking doesnt only occur where the Federal Reserve creates money from nothing, explaining how most of the credit created since the 1980s has been created in securities markets, not in the traditional banking system. Securities market credit is in the form of paper to assets, usually piled on top of other paper claims to assets, just as banking system credit is.
And this is what I worry will happen to bitcoinpaper claims, piled upon paper claims, piled upon paper claims to the actual bitcoin.
In the negative context, it means liquidity is improving but its coming from the bad kind of leveragepaper claims to an asset that arent backed by the asset itself, or circulation credit as economist Ludwig von Mises calls it, says Long.
The Wall Street exec went on to point out that fractional reserve banking doesnt only occur where the Federal Reserve creates money from nothing, explaining how most of the credit created since the 1980s has been created in securities markets, not in the traditional banking system. Securities market credit is in the form of paper to assets, usually piled on top of other paper claims to assets, just as banking system credit is.
And this is what I worry will happen to bitcoinpaper claims, piled upon paper claims, piled upon paper claims to the actual bitcoin.