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/biz/ - Business & Finance

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57223256 No.57223256 [Reply] [Original]

Explain what an ETF is in retard speak and why I should be excited for it.

>> No.57223305
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57223305

Exchange Traded Fund.
And investment fund that holds assets (BTC) that track the price (of BTC) and can be traded.
This is also a "spot" ETF, so (((they))) actually need to physically (if physically is the right term for a digital coin like Bitcoin, but you understood) buy and hold Bitcoin increasing the demand with all the billions of dollars that are going to flow into crypto.

>> No.57223321

>>57223256
Eat that frog
Every morning, you'll have a lot of things to do, but out of everything, you'll have one task that's like a big fat frog you'll have to eat
You'll complain and build it up to be worse than it is the longer it takes you to actually get the job done, but if it's the first thing you tackle at the beginning of the day, then you won't have to worry about it or do it anymore. In fact, everything else becomes simpler. Easier. After all, you already ate the big fat frog.
Eat that frog

>> No.57223332

Just fuck off this board already

>> No.57223337

>>57223305
>actually need to physically (if physically is the right term for a digital coin like Bitcoin, but you understood) buy and hold Bitcoin
Those companies that have filed for an ETF, haven't they already done this? Surely they don't want the entire market to frontrun them, they'd be accumulating way before launching the ETF, no?

>> No.57223347

>>57223256
most boomers/normies are too lazy to buy bitcoin but will gladly give their money to blackrock or whoever who will buy it for them

>> No.57223358

>>57223337
No

>> No.57223374

More money tradfi accounts that can buy an finite resource is bullish.

>> No.57223446

Listen to this:
https://www.youtube.com/watch?v=PZZq_tyV8_M

TL;DW
An ETF basically allows bitcoin to be integrated into traditional institutional finance.
Currently in order for a financial company to give investors exposure to btc they have to:
>Buy with all Cash
>Set up all the legal and financial infrastructure which would take years
>Figure out custody and set up deals with exchanges
Post ETF what is involved
>Get instant low interest loan for tens of millions of dollars or more
>Buy tens of millions same day with standard financial stuff that's already in place
>Leverage your ETF to buy more of the ETF
Basically unlocks ETF stuff for every major institutional thing, particularly so they can buy it with loans rather then cash with 0 effort.

That as well as
there are 11 ETF companies looking to get the #1 slot (#1 slot is important because for ETFs having high liquidity is important, so all traditional investors will default to the largest one) So they'll be pouring a ton of money into btc, advertising, sales to try to get to #1.
More then a couple are starting out with 0 fees, Van Eck is giving 5% of proftis to btc core team, a bunch of stuff to try to get to number one.
People hugely underestimate the impact of the ETF, blackrock is said to be planning to buy 2 billion in the first week.
(They are competing with grayscale who will be starting at 20 billion due to transferring from their previous btc investments)

>> No.57223457

>>57223305
Just like the silver they totally have for silv3r etfs.

>> No.57223470

>>57223333