With the introduction of cryptocurrencies, I feel there are now massively unexploited arbitrage opportunities and other types of plays across assets and markets. If you are tricky and smart, you can use a traditional option or exotic derivative here, a cryptocurrency flash loan or stake/yield scheme there, move the money through these wrappers and lend it on that platform and voila, you’re making money hand over fist because nobody’s happened on that particular tangle of money yet. Dozens of legitimate traditional exchanges, dozens of cryptocurrency ones, hundreds or thousands of products and platforms.
Well, plenty of traditional prop trading firms have moved into crypto. So I'm sure a lot of those routes are actually already being pursued to an extent. The biggest problem though is due to the relative lack of regulation, most traders are really going to struggle against the exchanges themselves. Flash crashes to trigger stop loss orders, front-running between exchanges, getting caught in pump and dump schemes etc. There are just so many dodgy activities that wouldn't last 10 seconds on a regulated exchange right now. And remember, you don't need to be smarter than average, the vast majority of traders are likely systematically losing money.
There are many options backed ETFs, these are essentially tracking the right to buy x product at y price. Sure if you trace it down long enough there is an asset there, but realistically you're buying an ETF tracking a number of contracts. The ETFs tracking oil futures aren't going to cash in on these options and collect the oil, so the assets are never going to change hands. They'll sell them at a determined date. Making them essentially contract ETFS. Is a contract for a good you're never going to buy in any other way more 'imaginary' than an electronic currency when compared to hard assets? I guess that's up to the consumer to decide.
Bitcoin is imaginary in the same way an email is an imaginary letter, or this is an imaginary conversation (we are not talking face to face, people of last century would struggle to understand that I am indeed talking with another person, somewhere in the world, even though I have never seen you, I understand you do exist as a thinking feeling person. Hope you're having a good day :) ).
I can't help but feel like Bitcoin came full circle. They went from replacing to embracing the broken, corrupt traditional finance system.
The fact that the Bitcoin community is loving this with no pushback just shows that everyone who actually cares about the goal of cryptocurrency rather than profit in fiat has moved on to XMR or BCH.
Thought you might find this insightful. I agree with you on, not your keys not your crypto - this ETF is not the best option for many people, but for some it is perhaps their only and therefore best option: https://www.reddit.com/r/Bitcoin/comments/q6pwtp/michael_say...
It should be noted that the ETF that will be allowed in the USA is in fact not an ETF for "physical delivery" but for "future contracts". In other words: there will not be a surge in open market buy pressure on Bitcoin at all.
Also, ETF's and similar products were previously approved for the EU and Canada, and also did not cause a great influx of new money.
Most etf’s have options which is something that hasn’t been available in the same brokerage account as all other money. Also my retirement accounts don’t allow GBTC but they might allow these etf’s ? Also physical delivery can be arranged by counterparty agreement in cme bitcoin futures. Also taking bitcoin delivery in large quantities is so much easier than taking gold and silver delivery. Now if they will only increase position limits on cme futures enough to not let these etf people do business.
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[ 2.8 ms ] story [ 42.6 ms ] threadThe fact that the Bitcoin community is loving this with no pushback just shows that everyone who actually cares about the goal of cryptocurrency rather than profit in fiat has moved on to XMR or BCH.
Also, ETF's and similar products were previously approved for the EU and Canada, and also did not cause a great influx of new money.