Shouldn't new Fund GABI aka Global Advisors Bitcoin Investment Fund boost price?

[Newbie1022]

exactly, I'm not talking about bitcoin hedgefunds. I'm talking about wall street in general. they usually have a very loose definition of 'fair play'

And this really should come as no surprise either. They play in a more or less zero sum game (they are not entrepreneurs that create things). They are traders. The only way they make money is if somebody else loses theirs. That's the nature, objective, and end of their profession. A finds a way to take B's money without breaking laws. Why we don't think that it is at least a disturbing possibility that A might just do everything they can to take B's money is kind of beyond me. Irrational exuberance. Play long term or hedge your bets.

[thezerg]

exactly, I'm not talking about bitcoin hedgefunds. I'm talking about wall street in general. they usually have a very loose definition of 'fair play'

And this really should come as no surprise either. They play in a more or less zero sum game (they are not entrepreneurs that create things). They are traders. The only way they make money is if somebody else loses theirs. That's the nature, objective, and end of their profession. A finds a way to take B's money without breaking laws. Why we don't think that it is at least a disturbing possibility that A might just do everything they can to take B's money is kind of beyond me. Irrational exuberance. Play long term or hedge your bets.

These people are not even "traders" in the traditional sense of adding value to a product my moving it from a location where it is plentiful to one where it is scarce.

They profit from information asymmetry and the easiest way to find an information asymmetry is to create it yourself.  If you do not know your edge against Wall street, don't play the game.  But at the same time don't ignore your advantages.  For example, many technical people have a natural edge... they can look at a company's products esp. looking at the new features and decide whether the engineering team is still vibrant.  This analysis would tell you not to invest in microsoft, for example, and honestly google is in transition -- new google maps is horrible, everything being crammed under google+, Android integration with cars has gotten worse.  Of course Google's momentum can keep it going for years.

...one famous retail investor followed his teenage daughters around the mall and invested in whatever they were excited about...

[BitChick]

Well, today is the launch date and it looks like maybe GABI is buying some coins off the exchanges.

This could get crazy really fast now.  

[xDan]

This could get crazy really fast now.  

It could! It might! But will it?

[maker88]

I duno if its them buying the coins, but yeah like 4000 have been bought already, glad I listened to my contrarian indicator (falling) and bought those coins at 560. Lunch- paid for. 

[Roy Badami]

Well, today is the launch date and it looks like maybe GABI is buying some coins off the exchanges.

This could get crazy really fast now.  

I don't think GABI is buying yet.  They're accepting cash from investors, but I think what they're saying is that it will be September before they start buying BTC.  (Of course, that could just be what they want us to think....)

But, Magnotti of GABI offers the most audacious theory of all:

“I don’t want to blow my own trumpet on this one, but I think GABI ending its subscription period and going live on the market will be a serious catalyst.”

Magnotti says he’s been flooded with requests to subscribe to his fund, even from traditionally conservative institutional investors – although he wouldn’t be drawn on giving specifics, citing client confidentiality.

For market watchers who want to test Magnotti’s theory, he’s planning to start trading at the start of September, so mark your calendars.

http://www.coindesk.com/market-monthly-stable-bitcoin/

[niktitan132]

Yep,GABI should drive the price up.

[Schickeria]

Yep,GABI should drive the price up.

If GABI is typical Hedge Fond, than this is not a one way. Hedge Fond does not mean that they'll buy in madness driving price up to make bitcoin holders presents. Hedge Fonds are also trying to make money when price turns south.

I get the impression that a lot of people here are seeing Hedge Fonds as some kind of new bitcoin cultists. They are not!

[niktitan132]

Yep,GABI should drive the price up.

If GABI is typical Hedge Fond, than this is not a one way. Hedge Fond does not mean that they'll buy in madness driving price up. Hedge Fonds are also trying to make money when price turns south.

I get the impression that a lot of people here are seeing Hedge Fonds as some kind of new bitcoin cultists. They are not!

Ok,tnx for clearing this out. 

[maker88]

Yep,GABI should drive the price up.

If GABI is typical Hedge Fond, than this is not a one way. Hedge Fond does not mean that they'll buy in madness driving price up to make bitcoin holders presents. Hedge Fonds are also trying to make money when price turns south.

I get the impression that a lot of people here are seeing Hedge Fonds as some kind of new bitcoin cultists. They are not!

you don't have to be a cultist buying wildly to drive the price up. obviously they're going to trade the ups and downs, like all of us do, but regardless...200 million dollars is going to get pumped into bitcoin. you honestly think thats going to go unnoticed? also the word is fund not fond 

[vuduchyld]

If I am not mistaken, $200mm is about 2.5% of the current market cap. Not insignificant, but I wouldn't think for even one second that this is a major short or intermediate price driver.

Keep in mind, also, that
1) these people are traders. They are NOT going to drive up their own buy price. As a hedge fund, they are under no obligation to buy bitcoin with that money, certainly not in the next few weeks. All they are paid to do is make money for their clients. If they make money buying, they will buy. If not, they won't. They may short.
2) markets are, by nature, forward-looking. Any benefit is likely priced in.

Not saying it is a bad thing. It is likely a good thing, certainly long-term. But this won't move the market right now.

[Schickeria]

also the word is fund not fond 

It's German!

Using French, German, English and Spanish words is only intellectual swaggering with my language knowledge.

And a pretext for mistakes ;-)

[maker88]

If I am not mistaken, $200mm is about 2.5% of the current market cap. Not insignificant, but I wouldn't think for even one second that this is a major short or intermediate price driver.

Keep in mind, also, that
1) these people are traders. They are NOT going to drive up their own buy price. As a hedge fund, they are under no obligation to buy bitcoin with that money, certainly not in the next few weeks. All they are paid to do is make money for their clients. If they make money buying, they will buy. If not, they won't. They may short.
2) markets are, by nature, forward-looking. Any benefit is likely priced in.

Not saying it is a bad thing. It is likely a good thing, certainly long-term. But this won't move the market right now.

market cap is not the same as amount of actual money that went into making that market cap. when all the bitcoins already paid for increase in value because of an exchange price hike, market cap increases. so if someone spend 5 million and drove the price up 10%, all the other coins would also rise 10% making the entire market cap rise 10%. market cap went from 2-3 billion to 12 billion during the last rally. do you think people actually put 9 billion dollars of new money into bitcoin? umm nope. couple hundred million is all it took.

[vuduchyld]

Sure, I understand what market cap represents.  I don't suspect it is possible to substantiate the claim that $200mm drove the market cap from $2-3 billion to $12 billion, but even if it were true, that is no guarantee of what $200mm invested in a hedge fund will do.

Keep in mind, they will not drive their own entry point UP. It will not happen. They are smarter than that.

[blatchcorn]

exactly, I'm not talking about bitcoin hedgefunds. I'm talking about wall street in general. they usually have a very loose definition of 'fair play'

And this really should come as no surprise either. They play in a more or less zero sum game (they are not entrepreneurs that create things). They are traders. The only way they make money is if somebody else loses theirs. That's the nature, objective, and end of their profession. A finds a way to take B's money without breaking laws. Why we don't think that it is at least a disturbing possibility that A might just do everything they can to take B's money is kind of beyond me. Irrational exuberance. Play long term or hedge your bets.

You cannot lose any money if you hold

[vuduchyld]

exactly, I'm not talking about bitcoin hedgefunds. I'm talking about wall street in general. they usually have a very loose definition of 'fair play'

And this really should come as no surprise either. They play in a more or less zero sum game (they are not entrepreneurs that create things). They are traders. The only way they make money is if somebody else loses theirs. That's the nature, objective, and end of their profession. A finds a way to take B's money without breaking laws. Why we don't think that it is at least a disturbing possibility that A might just do everything they can to take B's money is kind of beyond me. Irrational exuberance. Play long term or hedge your bets.

You cannot lose any money if you hold

I'm not holding....I'm HODLING!  Definitely not letting my stash go anytime soon!  I'm just not betting on a big jump due to the hedgies.  And that's fine with me...I can add more on dips, which I've done 3 times in the last 7-10 days.

[BitchicksHusband]

We have seen new, large buys on Friday and today at the end of the British workday.  They do appear to be being on-market every day.  We'll see if it continues.

[Chuckee]

[BitChick]

I said, "Shouldn't new fund boost price?" not "new fund Will boost price!"  

Hopefully something happens one of these days. . .

[600watt]

looks like the gabi guys found a way to buy at really low prices....