Bitcoin Spot ETFs will not be convertible to Bitcoin for fiat currency only.
2101 sats \ 10 comments \ @UnknownFacts 10 Jan bitcoin
Bitcoin Spot ETFs cannot be exchanged for real bitcoin, only for fiat money. This crucial detail is emphasized in the SEC document.
‼️Investing in this fund is similar to buying a share with money; You don't exchange it directly for bitcoin, that is, you will only be able to redeem the ETF in fiat.👇🏻
Coinbase Custody Trust Company, LLC (coinbase) is the designated custodian for the holdings in the ETF, that is, the American exchange will be the custodian of the 'bitcoins'. (Mostly it will be Coinbase)
ETFs have no backing under regulations, including bans: 'Digital asset markets in the United States do not yet have clear regulations. This includes restrictions on mining, trading, custody or even the operation of the Bitcoin network.
The SEC claims that CBDCs are a potential threat to bitcoin (trust): “Central banks in several countries are developing their own digital currencies (CBDC). Unlike bitcoin, these are backed by governments and could be more convenient and widely accepted as a means of exchange or store of value.
‼️The document on bitcoin ETFs claims that the btcs held by Coinbase will be stored in cold (cold wallet) BUT at no point does it mention that it can be verifiable by anyone on the blockchain.
Adoption or fake sale of Bitcoin? Draw your own conclusion 😬
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1305 sats \ 0 replies \ @jgbtc 10 Jan
CBDCs widely accepted as a store of value? Lol, yeah sure. Whatever you say SEC.
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50 sats \ 1 reply \ @jeff 11 Jan
Hmmm...everybody is using the same company to custody?
It's a good thing CEXs never get hacked.
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0 sats \ 0 replies \ @cryptofolyo 25 Jan
once hacked that much liquidity is gone out of the market will be difficult for the hacker to sell and get exits
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0 sats \ 0 replies \ @f6287b82CC84bcbd 11 Jan
Its just a legal framework for big companies to own bitcoin.
Currently there is none unless you actually understand it
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0 sats \ 0 replies \ @guts 11 Jan
CBDC backed by government air.
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0 sats \ 0 replies \ @0xIlmari 11 Jan
I mean, obviously, duh. Commodity ETFs aren't ever normally convertible to the underlying, be it Bitcoin, gold, corn or natural gas. There may be a third party offering such a service.
That being said, I think the backing coins will be there, but CoinBase might initially be opaque in publishing a proof of reserves.
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0 sats \ 0 replies \ @zarko 11 Jan
This is all a great psyop.
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0 sats \ 2 replies \ @Public_N_M_E 10 Jan
so whats the difference in buying a share of coinbases bitcoin via the ETF and buying a share in coinbase itself??
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0 sats \ 1 reply \ @patrick1 10 Jan
If you buy a share of coinbase you're exposed to coinbase's business rather than just bitcoin.
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0 sats \ 0 replies \ @Public_N_M_E 10 Jan
would you put it passed CB to sell/lend/utilise the BTC they hold to save themselves should the need arise? personally i'm more for holding the coins in my name. but i do see the benefit of the ETF for onboarding.
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