53 sats \ 2 replies \ @birdeye21 15 Jun 2023 \ parent \ on: BlackRock Close to Filing For Bitcoin ETF Application: Source bitcoin
rug pull in the sense that if they need real bitcoin, they'll quickly learn they don't have any available, and at that point they better hope they have easy and timely access to acquire real bitcoin
complacent ETF holders without proper education may sit in Bitcoin ETFs thinking they'll cash out for dollars in the future only to learn those dollars are much less valuable
I agree that billions holding self-custody isn't the likely path forward, but you can't even use an ETF as custodial bitcoin for payments/transfers/etc., the ETF just an investment vehicle afaik
You're right, it's meant as an investment vehicle. As long as it's fully backed, I don't see a problem. The price will likely go up significantly, bringing a lot of publicity. If even 5% of people who buy the ETF to get rich end up going down the rabbit hole, the world will be a better place.
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Maybe the ETF will serve as an educator for some, but if it only drives 5% down the rabbit hole, at the expense of 95% being stuck with paper bitcoin, I don't know if that's a net positive.
I get the benefit on paper of getting spot ETFs - it's the legitimizer needed to get institutions on board - but if we do go full hyperbitcoinization, the mass exodus out of tradfi could be very painful
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