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Spot Bitcoin ETF receives official approval from the SEC

cointelegraph.com

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Re: Spot Bitcoin ETF receives official approval from the SEC

#571

Post by helsinkiandrew »

spaceman_2020 wrote: post #559
gigatexal wrote: post #547

Earlier quoted context omitted.

Here’s hoping bitcoin goes to zero

Bitcoin didn’t go to zero with people buying it through shady exchanges operated out of tax havens, and you think Bitcoin will go to zero AFTER its available to every investor in the US through every finance app and is being sold by giant hedge funds?

> and you think Bitcoin will go to zero AFTER its available to every investor in the US through every finance app and is being sold by giant hedge funds?

The reasoning is (I'm not saying I believe this will happen just that it is an interesting thought experiment) that if people quit the shady exchanges and start trading Bitcoin ETF in substantial numbers it could begin to starve the crypto network of transaction fees and the exchanges and other crypto companies of customers.

If Bitcoin ETFs become the main way bitcoin is traded then purchasing bitcoin is just for speculation and not an 'investment in crypto and the future of finance', in that case it's much easier for the bubble to burst.

Re: Spot Bitcoin ETF receives official approval from the SEC

#572

Post by seydor »

Octokiddie wrote: post #205

The strong anti-Bitcoin sentiment on HN is still amusing. It goes way back - 13 years or more. Having read many of these negative comments, I think part of this sentiment boils down to the commenter seeing no point to Bitcoin. Just this thread has examples. It must be more than a little annoying to feel very strongly that Bitcoin is pointless, but to also notice that it's still here. Year after year. If that shoe wer…

hn is all about the vc ecosystem which deals in dollars, so this is understandable. same with banks

Re: Spot Bitcoin ETF receives official approval from the SEC

#573

Post by zubairq »

jMyles wrote: post #458
ksjskskskkk wrote: post #254

Earlier quoted context omitted.

fidelity et all have all the dollars. if there's a fork, they will probably own 51pct alone. you will be asking about THEIR fork.

> fidelity et all have all the dollars. if there's a fork, they will probably own 51pct alone. you will be asking about THEIR fork. I have read this comment five times, and I simply cannot make heads or tails of it. What is "THEIR fork"? If there's a fork, everyone has keys which underpin addresses on both forks. How do you know which fork belongs to "fidelity et all"? And more importantly, why is that relevant? Isn'…

Yes everyone with keys will have access to addresses on both forks. Which is why people have access to both “Bitcoin” and forked “Bitcoin Cash” addresses with one set of keys

Re: Spot Bitcoin ETF receives official approval from the SEC

#575

Post by pavlov »

isoprophlex wrote: post #548
pavlov wrote: post #531

My prediction is that Bitcoin will become fully institutionalized within twenty years, to the point that the “Bitcoin” held by investors are entirely disconnected from the theoretical blockchain. A similar thing happened with stocks. Not so long ago they used to be physical pieces of paper. You could trade shares peer-to-peer and even anonymously by handing over the share certificate to someone in person. For dividen…

How will they implement tracking of bitcoin provenance in their new systems? Maybe they can use some proof-of-work blockchain tech for that, I heard it is a really good fit for those use cases :^)

Same way as they track the trillions of dollars worth of stocks and bonds that are traded every day. No need to reinvent the wheel with a much slower and less power-efficient system.

Re: Spot Bitcoin ETF receives official approval from the SEC

#577

Post by zubairq »

postcynical wrote: post #51
ur-whale wrote: post #15

Earlier quoted context omitted.

> and what would happen during a fork? Now, that is a very interesting question. If said ETF did their homework properly, their handling of a fork should be described in detail in their prospectus. Not that I would ever buy a BTC ETF since it precisely negates what I believe Bitcoin to be useful for, but if I had to, I'd pick the one that would convert the forked coins back to BTC immediately after the fork. If enoug…

> Not that I would ever buy a BTC ETF since it precisely negates what I believe Bitcoin to be useful for, but if I had to, I'd pick the one that would convert the forked coins back to BTC immediately after the fork. Would it actually be clear which fork is the winning one?

Yes it would be clear. According to this site there have already been 105 forks of Bitcoin:

https://forkdrop.io/how-many-bitcoin-forks-are-there

Re: Spot Bitcoin ETF receives official approval from the SEC

#578

Post by pavlov »

zubairq wrote: post #552
pavlov wrote: post #531

My prediction is that Bitcoin will become fully institutionalized within twenty years, to the point that the “Bitcoin” held by investors are entirely disconnected from the theoretical blockchain. A similar thing happened with stocks. Not so long ago they used to be physical pieces of paper. You could trade shares peer-to-peer and even anonymously by handing over the share certificate to someone in person. For dividen…

Actually a huge amount of Bitcoin that people bought from large institutions over the last 5 - 10 years was already not on the blockchain. (1) a customer would go to an exchange’s website and purchase 1 Bitcoin (2) the exchange would add 1 to an internal counter representing the Bitcoin balance for that customer on their internal SQL database (3) the exchange would use / trade that money sent by the customer to try t…

The popularity of these scammy exchanges despite the massive red flags shows that this is actually what customers want. They don't want the theoretical advantages of permissionless blockchains and private keys, they just want penny stocks that trade 24/7 and are called "crypto" because it sounds cool.

So institutions will take advantage of that desire for convenience and work with regulators to turn "crypto" into just another product on their menu, with the vast majority of customers having no other way to access it.

Re: Spot Bitcoin ETF receives official approval from the SEC

#580

Post by kortilla »

zubairq wrote: post #552
pavlov wrote: post #531

My prediction is that Bitcoin will become fully institutionalized within twenty years, to the point that the “Bitcoin” held by investors are entirely disconnected from the theoretical blockchain. A similar thing happened with stocks. Not so long ago they used to be physical pieces of paper. You could trade shares peer-to-peer and even anonymously by handing over the share certificate to someone in person. For dividen…

Actually a huge amount of Bitcoin that people bought from large institutions over the last 5 - 10 years was already not on the blockchain. (1) a customer would go to an exchange’s website and purchase 1 Bitcoin (2) the exchange would add 1 to an internal counter representing the Bitcoin balance for that customer on their internal SQL database (3) the exchange would use / trade that money sent by the customer to try t…

That’s not at all fractional banking. That’s called a bucket shop.
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