taking coins out of a lock. drops a etf market cap. but..
then they have less coins meaning it increases the price.. same is true for the opposite.
You cannot change bitcoin/gold price by burning shares of an etf.
That is not how it works.
This may work for altcoins, but not for an etf.
Let's go back to the gold etf iau
https://www.ishares.com/us/products/239561/ishares-gold-trust-fundThey have in custody :
Ounces in Trust as of Jun 28, 2022 16,425,807.14
Shares Outstanding as of Jun 28, 2022 864,550,000
If they reduce the amount of Ounces and shares and keep the ratio, the price won't have any change. The gold is not locked.
They cannot manipulate gold price by creating or destroying shares.
The same is true for a bitcoin etf.
see you had to.. as proven by the quote you just made.. you had to look outside of the market cap chart. to then find the actual "ounces in trust"
if you want to know the ounces in trust holding.. yes you just found it. but that was not from the market cap chart. and thats the point
..
now getting to the point of how the ounces in trust adjustment then affects the price..
its how markets react.. its called "supply and demand"
take away supply to create more demand..
contact any share based company in the entire world, they will all tell you how 'share dilutions' occur.. more shares = less value per share.
same is true for the opposite share buyback = more value for remaining shares.
its the whole point of why they do it.
..
if demand is to low or to high where the market is in a dip or climb. they adjust their holdings to compensate
market cap number by itself explains nothing about the validity of a market. you actually need to find the other source stats that make up the market cap to explain whats actually occurring
..
now. what i was originally talking about before the meander
by locking up enough coin to not be in active circulation on the bitcoin market exchange. means less supply on bitcoin markets to sell.. less coin able to sell is causing buy pressure
even satoshi a decade ago was telling people this when asked about the "lost coins" (locked and never to move).. he replied that it just adds more value to all the other coins left moving around
supply and demand is one of the most basic concepts to grasp
