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📺 Useful Vids 📺
What SEC Thinks 👉 https://www.youtube.com/watch?v=uPBR3mn6wKU&
Upcoming Market Risks 👉 https://www.youtube.com/watch?v=3cvUpAy_aXQ
ETF Update 👉 https://www.youtube.com/watch?v=o3-j0JTTJYE
– TIMESTAMPS –
2:39 ETF Overview
5:10 Bitcoin ETF Background
8:25 Gensler Said What?!
11:25 Why Futures ETF Suck!
14:48 Risks with Futures ETFs
17:46 Why The SEC Approves
⛓️ 🔗 Useful Links 🔗 ⛓️
Commoditiy Manipulation: https://www.ft.com/content material/bdc8c9e8-3de1-11e2-93cb-00144feabdc0
Gensler Statments at Aspen: https://www.sec.gov/information/public-statement/gensler-aspen-security-forum-2021-08-03
Outstanding ETFs: https://decrypt.co/62912/high-profile-bitcoin-etf-applications
ETF AuM: https://www.statista.com/statistics/224579/worldwide-etf-assets-under-management-since-1997/
Backwardation vs. Contango: https://www.investopedia.com/articles/07/contango_backwardation.asp
SEC Warning on Investing: https://www.sec.gov/information/public-statement/staff-statement-investing-bitcoin-futures-market
True Cost of Commodity ETFs: https://motion.capital/the-true-cost-of-commodity-etfs/
🤔 What is an ETF? 🤔
An ETF is a collective funding automobile that, because the title suggests, will be traded on an trade.
These are funds which can be designed to trace an asset, a basket of property or an Index. These funds then difficulty shares that particular person retail buyers can purchase and promote simply
ETFs have grow to be extremely fashionable given how simply individuals should buy these shares. This will be completed via a easy share buying and selling account similar to in the event that they have been buying the person shares themselves.
📈 Bitcoin ETFs 📈
A completely regulated Bitcoin ETF would open the floodgate to thousands and thousands extra retail buyers. It would enable these buyers to simply achieve publicity to Bitcoin via their brokerage accounts in a tax environment friendly means.
It would additionally enable a few of these giant institutional buyers that have been anxious of storing precise Bitcoin one other avenue to take a position.
Previously, they needed to depend on different fund constructions to take a position like closed-end funds and so forth.
🤔 Change in Tune 🤔
One of essentially the most fascinating statements that got here out of the convention attended by Gary Gensler on the Aspen safety convention is that the SEC is extra more likely to approve futures ETFs.
This was fairly stunning particularly given the truth that the SEC warned towards Bitcoin futures investing earlier this yr.
This caught plenty of the futures candidates off-guard and angered them.
👎 Why Future ETFs Suck 👎
When it involves the futures backed ETFs, the fund issuer has to spend money on underlying futures contracts so as to replicate the worth of Bitcoin. This prices cash particularly as they need to consistently roll over the futures devices to later dates.
Moreover, the CME futures markets are rather a lot much less liquid than the spot market. It’s not solely the prices of rolling these over however the truth that you possibly can be getting suboptimal efficiency provided that the fund creates demand for the futures on a roll.
Moreover, there are others available in the market which will attempt to entrance run these orders. This signifies that the worth is being bid up on every roll.
Futures additionally solely commerce throughout market hours whereas Bitcoin will commerce 27/4 365. This means that there’s a state of affairs in market gaps. Moreover, you might have the danger in extremely risky buying and selling that the CME halts buying and selling when Bitcoin itself remains to be actively buying and selling.
😏 Why The SEC Likes It 😏
The SEC claims that the spot market is unregulated and that they’ve extra oversight within the futures market. They are anxious about “manipulation”.
This is asinine as there may be a lot manipulation happening within the futures market. You even have to contemplate the truth that the spot market will influence on the futures market.
There are different theories as to why the SEC is eager on these devices and that’s due to the cash that may be made on Wall Street structuring them. It is well-known that the SEC is pleasant to wall avenue.
📜 Disclaimer 📜
The data contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who will not be a licensed monetary advisor or registered funding advisor. Trading Forex, cryptocurrencies and CFDs poses appreciable danger of loss. The speaker doesn’t assure any explicit end result.
#Bitcoin #ETF #futures #Crypto #CME #SEC