i haven’t seen much discussion about this, but it might be wise for anyone holding shares of a Bitcoin ETF to understand the circumstances under which trading might be halted.
on Stacker News most of us understand the value of custody and how it ensures access to one’s coins, but the risks associated with a market shutdown during extreme price events are not talked about as much. even if your coins are safe, you may not be able to buy or sell when you want if you rely on traditional finance rails for Bitcoin exposure.
i know there are circuit breakers that halt all trading when the S&P 500 falls more than 7%, 13%, and 20%, but I’m not as familiar with the rules for individual stock circuit breakers and whether they are also enforced for ETFs. i think there are even circuit breakers for upside price swings, not just downside ones (someone correct me if i’m wrong).
i wouldn’t be surprised to see crazy price action that causes traditional financial markets to trigger circuit breakers, and want to help Bitcoiners who have exposure to ETFs better understand those risks.
can anyone share a template that shows all the conditions under which Bitcoin ETF trading will be halted?