Bitcoin, House discussed on What Bitcoin Did

What Bitcoin Did


It's easy access for effectively the stock traders, right? And you might say that it might be like the older generation gene X is the boomers that have they call up the brokers and whatnot. But in reality, I think it's a very good instrument. The future's ETF. If your institutional trader because it's fully regulated, you could either trade the CME, or we can trade the equities. But if you're going to buy Bitcoin to hold, you'd be an idiot to buy the ETF that's currently structured because it's so expensive to hold it. Just the way I structured you paying, what is it? You might be losing 15% per year by holding there. Because you're buying futures and futures is effectively holding Bitcoin by renting the House rather than buying the house. But a spot ETF changed that then. Yeah, it's a lot better. The rent you pay on that might be half a percent instead of 15%. Per year. But with this spot ETF take volume away from the future's ETF because they've got an alternative and better product. I don't know if it would take much volume because it would attract the HODLers. Yeah. You know, I spot 80 if you would buy and you'd be a comfortable holding there and paying your management for your half a percent per year. Grayscale, your patron payer management for what? And I gouging 2%, which is highly ridiculous. Given the size of that instrument, but then if you're doing like a futures ETF instrument, you might be ten. It depends on how bullish the market is might be ten, 15, even 20. Sometimes it goes to 30% annualized to hold that. And so it's great if you're an institutional trader that's in for a three day trade or a one hour trade or a 5 minute trade because you don't care about the rent. At that point. But if you're huddling, that's critical. You know, bitcoins go to now appreciate ten, 20% per year, just so that you break even. Versus holding Bitcoin through an ETF versus holding Bitcoin and occult storage yourself, right? So. Yeah, it's the most expensive as a features ETF, the next would be a spot ETF. The next would be buying the underlying Bitcoin under custodian solution they might charge 20 bits like .2% per year to hold it for.

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