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34 sats \ 3 replies \ @HardMoney 26 Mar \ on: Is custodial bitcoin really worth anything? bitcoin
ETFs improve 10x when the custodial model is multi-institutional multisig.
Obv still less advantageous than real bitcoin but there are certain benefits that make holding bitcoin an option for institutions and HNW people unable to manage keys.
Nightmare scenario is Coinbase fucking up and losing access to keys or getting hacked. Multisig negates this honey pot immensely.
It’s inevitable that fiat rails get connected into bitcoin via instruments like ETFs. A way better top of funnel entry vs shitcoin casinos like Coinbase.
Hopefully many etf investors learn more overtime and decide to buy real bitcoin.
Why do you think it is way better than shitcoin casinos?
I don't think etfs will ever allow you to exit to a utxo. So at best you have a legal claim on the bitcoin that the fund owns. Probably though all you have is a "share" of the fund which is worth in dollars whatever proportional amount it represents of the fund.
I accept your point about institutions and hnw people.
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Better than shitcoin casinos because Coinbase basically incentivizes anyone new to start trading shitcoins.
If Coinbase is the first interaction a new coiner has they will likely “diversify” into shitcoins at some point.
If an etf is the first interaction a new coiner will start with it as 1-5% of their portfolio, see it grow as a % overtime. And may decide to learn more about bitcoin via podcasts or books.
ETF investors won’t rotate into shitcoins as easily as a first time Coinbase user
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Fair point. I hadn't considered that.
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