Won't 'the whales of wall street' also be able to effectively short Bitcoin now too? I think it's going to lead to a lot more volatility.
How do you short bitcoin using an ETF (besides just selling your ETF shares)?
Couldn't you leverage assets to borrow ETF shares to sell? Just like shorting bitcoins, except ETF shares instead? I would think down pressure on the ETF price would cause similar pressure on exchanges. Maybe I'm missing something here.
Once again, if you've got an actual seat at the exchange you don't even
need to borrow shares. You can just issue more (naked short). Even if you can't cover, you just get hit with a what, 5% failure to deliver fee? And usually you can cover by the settlement date, or at least get some via repo.