The Bitcoin etf gives institutions the ability to short the bitcion price.
Every time a unit of the etf is shorted, a new unit is created that is available for sale.
An etf it's a derivative and institutions can create as many of them as they like, without necessarily increasing the issuance of the etf itself.
This is why net outflows from the etfs have been occurring since March 13th.
Fake supply can be created at the brokerage level. Nobody really owns the shares that they think they have in their brokerage account. The shares are owned by a nominee company. The customers have a derivative contract with the brokerage for the difference in price in Fiat money. The contract itself, f is in fact a debt obligation.
The contract is treated as colateral because the price moves in line with the equity that it pretends to be.
Does anyone remember collateralised debt obligations from 2008? That is what you are getting if you buy the bitcion etf.
ShortFiat / Short Fiat
npub1md…pctp9
2024-09-01 17:21:15
Author Public Key
npub1md39ua3h2s7204a7v5p9sdxmxx9qc7m4kr3r6naeuwfznad6d7nsxpctp9Published at
2024-09-01 17:21:15Event JSON
{
"id": "5b604adbec742879f61b912b4b098f869c47b5cfed2499e63b35ceccc1f26cb0",
"pubkey": "db625e7637543ca7d7be65025834db318a0c7b75b0e23d4fb9e39229f5ba6fa7",
"created_at": 1725211275,
"kind": 1,
"tags": [],
"content": "The Bitcoin etf gives institutions the ability to short the bitcion price. \n\nEvery time a unit of the etf is shorted, a new unit is created that is available for sale. \n\nAn etf it's a derivative and institutions can create as many of them as they like, without necessarily increasing the issuance of the etf itself.\n\nThis is why net outflows from the etfs have been occurring since March 13th.\n\nFake supply can be created at the brokerage level. Nobody really owns the shares that they think they have in their brokerage account. The shares are owned by a nominee company. The customers have a derivative contract with the brokerage for the difference in price in Fiat money. The contract itself, f is in fact a debt obligation. \n\nThe contract is treated as colateral because the price moves in line with the equity that it pretends to be. \n\nDoes anyone remember collateralised debt obligations from 2008? That is what you are getting if you buy the bitcion etf. \n\n",
"sig": "0e117b717c652606fafe2fc5ef76ea8b38ebf6d919fa53f038ac42e87b3efc8a1b4d2db1d59d0b802c86bf9727c6c9497e8e12a2d16659d27ffa48c52fa05700"
}