Everyone seems to be obsessed with the SEC's approval or rejection of the next phase of the ETF in a couple of days, which will be obviously dennied and my thesis is the market is smart enough to know this and so the rejection is already priced in which means there will be no dump.
However, no one seems to be talking about the ETN, which would allow investors immediate access to "BTC shares" without all the bullshit that the ETF needs.
https://www.bloomberg.com/news/articles/2018-08-15/lovelorn-u-s-bitcoin-etf-fans-may-find-satisfaction-in-swedenMore info there. Looks like it's already opened? didn't do much market wise.
ETNs are not exactly similar to ETFs. In ETN, the notes are traded with a significant amount of premium unlike ETF. For ETF, there is no premium to be paid on the price of the underlying asset. So ETF is more suitable for the small investors like us compared to ETN. Probably that is the reason we are not seeing much excitement about ETN among the community.
Also an ETN is usually backed by a physical asset. However, I am not sure in this case. Most probably this ETN is backed by physical bitcoins. That is the reason why we have not seen any impact on the market either.
Not really. With an ETF, at least in the initial stages, you are going to need to be pretty much rich to invest. There are 0 chances that a low entry investment ETF gets passed, and the only ones that have a (low) probability of passing are the so called "certified investors" or whatever they deem it, basically it means that you must have a lot of money to own even 1 share. Consider that the latest effort was a 25 BTC-per-share ETF, so forget about small investors. ETN will have to do it while the ETFs remain for "qualified investors" only.
I predict that after the first ETF is passed, then we'll have lower and lower entry ETFs so the small investor will be able to own some too.
As far as these being derivatives of derivatives or whatever... for me it's all the same. If you don't own your keys you own 0 BTC, so who cares if people choose ETN or ETF, not my problem, they will have to consider what suits their needs or incapacity of keeping BTC's safe on their own.