Re: 2021-1-25 Fortune - As BTC ETFs stall, a new $180m crypto trust fund goes public
Good news!
The fees at GBTC seem excessive and competition will only help both fees to decrease, but also lockups and the premium people were willing to pay to buy GBTC. If the SEC would stop being such luddites, they could resolve the issue quite quickly by just approving the ETF.
The fees at GBTC seem excessive and competition will only help both fees to decrease, but also lockups and the premium people were willing to pay to buy GBTC. If the SEC would stop being such luddites, they could resolve the issue quite quickly by just approving the ETF.
it's good news but given that it's a small canadian fund, i don't have the highest hopes. they currently hold ~5600 BTC vs grayscale's ~650k. that first mover advantage is significant in terms of the public market's liquidity, and that really matters to investors and traders, especially since ninepoint is a relative unknown. if you think about it, 1.3% annually (what shareholders would save by switching from GBTC to BITC.U) is nothing compared to bitcoin's potential price movements.
when the SEC finally approves a fund available to non-accredited investors, it'll be a game changer for sure. the american retail market is still largely untapped, and i think large institutions like pension funds/asset managers will eventually be holding ETF shares instead of the current primary available option---futures contracts, which are not ideal for long term investment.
As I wrote somewhere else we are seeing small but important incremental steps into the right direction. Maybe it's very good and healthy that we haven't had such ETFs approved so far: if you think the price levels and recognition that bitcoin has had in the last years, imagine what could happen when another market share like that will open.That is the bright side, on the dark side I am still very much concerned about the fact that bitcoin needs to evolve its fungibility properties. But that's for another thread.