Great news, thank you for sharing this.

This is another breakthrough for Bitcoin, considering that Valour also acquires bitcoin now as an asset and provided the Bitcoin Zero for investors which denotes that they are now embracing its worth.  The bitcoin zero as I see it isn't bad that they offer it with zero management fee.

Though I'm not sure if it will be for good or maybe just for the initial offering.  We can't tell if the US right now is also cooking something which could also lead to a better perspective towards bitcoins and other cryptocurrencies in 2021.

It always concerns me to see the race to zero when talking about financial related products. At some point along the way the manager of this ETF has to be making money off you and I actually prefer when they tell you up front where they make their money without burying it in the fine print. I am more than happy to pay a small fee in return for the knowledge that someone has a financial incentive to protect my money over the long term.

Just a little nitpick here: this is not an ETF, it is an ETP. It actually it is a certificate. A certificate is a financial structured product (basically a zero coupon bond and an option) that doesn’t include any management fee. The issuer and the market makers of this product rely on other sources of income, like for example the bid-offer spread in the market.


You are one of the few. Not everyone is in your privileged position. There are lots of investors who cannot, simply, hold coins. For those people the only way is trough financial structures like this one or other similar products (BTCE, Grayscale or other Exchange Traded Funds).

I guess what I wrote was clear because I am only saying that instead of leveraging the real deal (bitcoin as an asset) they are re-branding it for the oldies so that they are more accustomed to something they already know. Being a bitcoiner I will stick to the real deal leaving them playing with the synthetic drug. Easy.
I believe that not grasping the very characteristics for investing in bitcoin (scarcity, censorship resistance, easy transferability...) is a big mistake.

When it gets rebranding under custody, does the true value of bitcoin gets manipulated for the rebranded one. As mentioned it is made for the old Riches to get into the market. As they're much into traditional form of investments, this form will give way for them. I do believe this to create something bad to the cryptomarket.

Very Good find.
Apparently I read the prospect too quickly, and was complacent with the fact many other certificates are actually free of management fees.
2.5% is outrageous.

Well, things escalated quickly.

First I used my Twitter account to cast shame on Valour


https://twitter.com/fillippone1/status/1336279832456548353?s=20

But they answered almost immediately:


https://twitter.com/ValourGlobal/status/1336324246650273793?s=20

So yes, fees are actually zero as you can see from Bitcoin Zero final terms, where we read:



This is why I had miss the information when I first checked. It’s a common practice for certificates issuers to have a “master prospectus” that fixes the general rules, only to be amended, where necessary, by each certificate final terms. So each certificate is ruled by the master prospectus integrated by the rules in the final terms, that have an higher priority on the certificate itself.

Case closed

Good news. Most countries in the west do allow investing in other jurisdictions, so effectively Europe may be taking the lead and being less restrictive than the US. I think that the real revolution would come from China actually allowing their citizens to invest their money safety. I obviously mean the average citizen. But meanwhile, we will now have another alternative. I really hope it gets approved to be used in tax wrappers in different states.

Quick question, when I see zero fees my next question is how do they earn their living? What would I pay for?

Talking about China in that context is completely unthinkable, do you expect the Chinese Communist Party to allow the average resident of their country to practice free will in anything, let alone do with their money what they want? You have not had the misfortune to live in communism, but those who are like me will only say that it is another word for hell on earth.

Everything China has done towards Bitcoin is a clear indication of their intentions, and they may become the world's first economic power, but their citizens are light years away from what some Western countries have today.

Indeed.
Certificates bear the issuer’s credit risk. Usually bigger firms issue those certificate via a dedicated, credit immaculate vehicle. But your point is totally correct.