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Title: When does an ETF buy coins Post by: xDan on March 06, 2017, 03:12:57 PM If the Winklevii ETF was accepted on 13th, will it go "live" then, and people can buy the ETF right away? Or is there still some delay?
And more importantly, at what point does the ETF actually buy new coins? If the Winklvii have 100K BTC, do they sell all those first before the ETF buys any more? (So it might actually have a negative effect on the price as more supply is available and some people may chose to buy the ETF instead of buying coins on an exchange?) Title: Re: When does an ETF buy coins Post by: manselr on March 06, 2017, 03:21:48 PM If the Winklevii ETF was accepted on 13th, will it go "live" then, and people can buy the ETF right away? Or is there still some delay? And more importantly, at what point does the ETF actually buy new coins? If the Winklvii have 100K BTC, do they sell all those first before the ETF buys any more? (So it might actually have a negative effect on the price as more supply is available and some people may chose to buy the ETF instead of buying coins on an exchange?) I think it's clear that the Winklevii may use some of his own holdings for the ETF, but im sure that we will not see them using 100%, they will buy a lot of coins to supply the demand so we will see a big price increase. Title: Re: When does an ETF buy coins Post by: BrewMaster on March 06, 2017, 03:22:09 PM And more importantly, at what point does the ETF actually buy new coins? when nobody or better say so few people knew about ETF. which means when you heard about ETF winkle twins have already invested in bitcoin and bought all the coins they needed for ETF and some more. Title: Re: When does an ETF buy coins Post by: pitham1 on March 06, 2017, 04:30:02 PM If the Winklevii ETF was accepted on 13th, will it go "live" then, and people can buy the ETF right away? Or is there still some delay? And more importantly, at what point does the ETF actually buy new coins? If the Winklvii have 100K BTC, do they sell all those first before the ETF buys any more? (So it might actually have a negative effect on the price as more supply is available and some people may chose to buy the ETF instead of buying coins on an exchange?) Is the ETF a close-ended fund? In that case, it will be open for subscriptions for a certain period of time. As and when people subscribe, the ETF will buy bitcoins to match the subscriptions. Title: Re: When does an ETF buy coins Post by: Biodom on March 06, 2017, 04:49:47 PM If the Winklevii ETF was accepted on 13th, will it go "live" then, and people can buy the ETF right away? Or is there still some delay? And more importantly, at what point does the ETF actually buy new coins? If the Winklvii have 100K BTC, do they sell all those first before the ETF buys any more? (So it might actually have a negative effect on the price as more supply is available and some people may chose to buy the ETF instead of buying coins on an exchange?) Is the ETF a close-ended fund? In that case, it will be open for subscriptions for a certain period of time. As and when people subscribe, the ETF will buy bitcoins to match the subscriptions. no, it is like GLD, to my knowledge. Winkies just provide the initial liquidity. What I don't remember is whether there is a yearly maintenance fee. If yes, hopefully, it is small; GLD fee is 0.4% yearly. That's the downside of ETFs plus tx fee each way, which is $5-10 in almost all brokerages. GBTC has an annual fee of 2%, which is way too much. |