Quote from: gentlemand on August 22, 2018, 11:04:44 PM

Quote from: svendoto23 on August 22, 2018, 11:02:31 PM

Why does everyone are into this ETF when it won't really affect the bitcoin's market price. If ever it will be approved the holder/company who has the ETF bitcoin will surely get the upperhand. Of course it will help citizens from the use who are not applicable to buy or invest on bitcoin will have the chance to get it as a stock but not as a currency like anybody does here.

There are ETFs that hold bitcoins. More demand means they have to buy more of them to hold for customers. Those ETFs would have a direct effect on the market.

Which ones are those?

As I understand it, these are locked funds. Once their structures are approved, they have a set number of shares to issue and supply won't change at all. After all, they need to track the spot market. Arbitrage is supposed to prevent any need to increase the underlying supply of the ETF. It's not supposed to be an isolated market.

But that's the rub. Arbitrage is supposed to decrease tracking risk, but it doesn't eliminate it. This is one of the legit reasons to deny Bitcoin ETFs. There are liquidity and tracking risks that are being ignored by applicants, and those have real implications for prospective investors.