Will Bitcoin ETFs Do To Bitcoin What Gold ETFs Did To Gold?
Read and find out…
It has been a longtime coming.
The clever clogs in Chicago, Wall street and the city of London have been watching the world’s preeminent cryptocurrency with a huge amount of fascination and thinking amongst themselves:
“Could we create a financial product out a currency whose intrinsic value we cannot manipulate?”
“ Could we do to bitcoin what we did to gold, by creating a futures contract and squeezing whatever we possibly could?”
Despite the profound scepticism of the regulators (SEC) about an unregulated currency whose origins have never been ascertained, the securities exchange commission gave the green light for futures contracts to be traded on bitcoin.
And there it began, the business of trading bitcoin ETFs on the Chicago Mercantile Exchange (CME).
For those who are new to the business of what exchange traded funds are, I have taken the liberty, by way of Investopia, to explain what it means:
A bitcoin ETF mimics the price of the digital currency, allowing investors to buy into the ETF without trading bitcoin itself.
Investing in a bitcoin ETF cuts out any issues of complex storage and security procedures required of cryptocurrency investors.
ProShares, a provider of specialized exchange-traded products, began trading of the Bitcoin Strategy Fund on Oct. 19, 2021, marking the first Bitcoin ETF to trade in the U.S.
In my previous article titled: “Gold ETFs Have Rendered Gold Completely Worthless and Useless” which was written on the eve of bitcoin exchange traded funds coming into existence, I captured in a bit of detail the degree to which paper gold became the weapon of choice in manipulating the actual commodity out of existence.
Gold ETFs Have Rendered Gold Completely Useless and Worthless
Just another reason to believe in the supremacy of bitcoin
In closing out the article, I ruled out the possibility of this sort of thing ever happening to bitcoin.