Nice!
Posted this on other platforms and for some reason it didn't go through on Nostr. Had some of the same thoughts as your post:
The Bitcoin ETF
There are plenty of articles detailing the pros and cons about the bitcoin ETF from a investment vehicle’s perspective, but almost no articles about the pros and cons from a bitcoin perspective.
Why The ETF Is a Great Idea (for bitcoin, but not for investors):
- The run up to the ETF launch has indeed generated a lot of noise and news around bitcoin, which is quite positive for the asset itself. This has taken the bitcoin conversation from the dark and smoky rooms of its heyday to the family dinner table.
- While there is still not much regulatory clarity around bitcoin and digital assets in the US in general, the fact that there are several ETFs in the “soon to be approved stage,” could potentially bode well for the industry as a whole.
- The asset managers that have submitted their ETFs for approval are some of the biggest and most respected institutions out there. It’s “smart” money that has finally realized the potential that bitcoin has in terms of financial return and demand from investors.
- Bitcoin has gone from being called a tool that facilitates illicit activities to potentially becoming part of every investor’s diversified portfolio with full regulatory backing. This is the same as when nobody believed in the Internet when it was first launched.
Why It’s Better To Own Bitcoin Directly (and not via the ETF):
- When investors buy shares of the ETF, they are basically owning a piece of paper that says that it equals a certain amount of bitcoin, held in custody by a third party. Investors are trusting these third parties’ fiduciary responsibilities that they will keep their bitcoin safe.
- History has shown that no amount of rules and regulation can prevent these institutions from failing, and if they do, investors could be wiped out.
- The amount of bitcoin in custody by these institutions will become honeypots or targets for hackers. Bitcoin and digital asset hacks and exploits will always continue to happen. Investors are better off acquiring bitcoin themselves to then quietly and privately custody it themselves- this last part is understandably still very hard to do for the average investor; however companies like IBEX are here to also guide its clients how to self custody the right way.
- There is still a lot of uncertainty as to what regulation will be like in the US regarding bitcoin and digital assets. In a very dark and (hopefully) unlikely scenario, the US government could confiscate all bitcoin as they did with gold back in 1933 with the Executive Order 6102 as a way to fight the Great Depression. Given the current and massive debt levels of the US government, this scenario could potentially not be too far out.
It is of the utmost importance for anybody considering to invest in the bitcoin ETF to take their time to understand what self-custody is or find the right bitcoin companies, such as IBEX, to guide them.
Rodrigo
npub1m7…jtvh9
2024-01-13 18:45:35
in reply to nevent1q…agqt
Author Public Key
npub1m7hssyvr3pdqq6w8jwhj7j7ts9uznfzt83rdzp72lmhqvuj2gngqqjtvh9Published at
2024-01-13 18:45:35Event JSON
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"content": "Nice! \n\nPosted this on other platforms and for some reason it didn't go through on Nostr. Had some of the same thoughts as your post:\n\nThe Bitcoin ETF\n\nThere are plenty of articles detailing the pros and cons about the bitcoin ETF from a investment vehicle’s perspective, but almost no articles about the pros and cons from a bitcoin perspective.\n\nWhy The ETF Is a Great Idea (for bitcoin, but not for investors):\n\n- The run up to the ETF launch has indeed generated a lot of noise and news around bitcoin, which is quite positive for the asset itself. This has taken the bitcoin conversation from the dark and smoky rooms of its heyday to the family dinner table.\n\n- While there is still not much regulatory clarity around bitcoin and digital assets in the US in general, the fact that there are several ETFs in the “soon to be approved stage,” could potentially bode well for the industry as a whole. \n\n- The asset managers that have submitted their ETFs for approval are some of the biggest and most respected institutions out there. It’s “smart” money that has finally realized the potential that bitcoin has in terms of financial return and demand from investors. \n\n- Bitcoin has gone from being called a tool that facilitates illicit activities to potentially becoming part of every investor’s diversified portfolio with full regulatory backing. This is the same as when nobody believed in the Internet when it was first launched.\n\n\nWhy It’s Better To Own Bitcoin Directly (and not via the ETF):\n\n- When investors buy shares of the ETF, they are basically owning a piece of paper that says that it equals a certain amount of bitcoin, held in custody by a third party. Investors are trusting these third parties’ fiduciary responsibilities that they will keep their bitcoin safe.\n\n- History has shown that no amount of rules and regulation can prevent these institutions from failing, and if they do, investors could be wiped out.\n\n- The amount of bitcoin in custody by these institutions will become honeypots or targets for hackers. Bitcoin and digital asset hacks and exploits will always continue to happen. Investors are better off acquiring bitcoin themselves to then quietly and privately custody it themselves- this last part is understandably still very hard to do for the average investor; however companies like IBEX are here to also guide its clients how to self custody the right way. \n\n- There is still a lot of uncertainty as to what regulation will be like in the US regarding bitcoin and digital assets. In a very dark and (hopefully) unlikely scenario, the US government could confiscate all bitcoin as they did with gold back in 1933 with the Executive Order 6102 as a way to fight the Great Depression. Given the current and massive debt levels of the US government, this scenario could potentially not be too far out.\n\n\nIt is of the utmost importance for anybody considering to invest in the bitcoin ETF to take their time to understand what self-custody is or find the right bitcoin companies, such as IBEX, to guide them.",
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