One Unforseen Aspect of ETF

[theonewhowaskazu]

GIGANTIC LEVERAGE

My broker will allow me to leverage with up to x4 on US ETFs & Stocks (there are liquidity constraints, but those are pretty loose) . Assuming the Winklevoss ETF falls into this category, right off the bat, I can leverage my BTC position 4 times what it normally would be. Now, you also must understand that I have other stocks in my portfolio. I can in turn use THOSE as collateral, for even MORE leverage.

The amount of BTC I could potentially buy with just one fairly well-funded IRA is astounding. Wish you were an early adopter and could have exposure to thousands of coins? When this ETF launches, that's your chance.

[cypherdoc]

well said.

and leverage is the equivalent of a short on the USD.  nice pair trade...

edit:  this was brought up in the IMF paper by Plassaras.