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RE: Will an ETF (exchange-traded fund) actually increase the price of Bitcoin?
Yes i think that it will increase the price of Bitcoin from very simple reason , bitcoin is still new to a lot of people when ever there is something like ETF inviolate more and more people are hearing about bitcoin and new people are buying some which will make to increase in the price
So you're saying that ETFs will make owning Bitcoin easier for the common folk, which should drive the price up?
Yes , every mention of bitcoin good or bad just expose it to more and more people you need to remember that many people still do not know what it is and that why they would like to try it mean that they will buy even in higher price just to try and that will make the price to increase
I guess you're saying that an exchange-traded fund would make it easier for people to own Bitcoin correct?
Yes sr. :)
Bitcoin futures are pure derivative trades that are settled in cash. Even if a billion USD are traded on these futures, theoretically, not a single dime of actual Bitcoin has to be traded.
Similarly, as we have seen already, not a single bitcoin backed ETF has been approved by the SEC.
To me this is an indication that a crypto ETF based on futures, or based on some other derivative concoction, and not the actual coins, is more likely what’s coming.
Yeah, from a PR standpoint it may help. But the approved ETF, just like the approved futures are essentially just paper trades and no real bitcoin will be required.
I got a question, if Bitcoin value is represented in an ETF, doesn't that mean the Bitcoin has to be out of the system and representing the ETF it is in in some way? Which means cold storage, or in a wallet representing the ETF correct?
Not necessarily. What if the ETF is based on futures, or on some derivative monster which itself is created based on futures alone?
Hmm, I'm not sure, and I don't really understand them enough to answer that question mate.