Wallstreet guys won't buy from exchanges

[aminorex]

when there are no more coinns to be had otc they will stop selling on the exchanges

[galbros]

What's really cool is you can EXCHANGE coins directly into the ETF.  Unfortunately you have to do it in lots of 5000 coins, so most of us or SoL but it is a nice feature of the ETF.

[DannyElfman]

What's really cool is you can EXCHANGE coins directly into the ETF.  Unfortunately you have to do it in lots of 5000 coins, so most of us or SoL but it is a nice feature of the ETF.

What is the point?

Send coins there to just pay ~1% per year?

[Schickeria]

They will contact some large miner or something like that to buy a large amount of coins, doing that off-market will be more secure too.
By doing this i don't know if the price will change so much like everyone is saying.

By doing this, miners would go to the drive up the price on exchanges. It is not that easy to elude the circulation of an economic system.

[abercrombie]

The bitcoin price is defined by exchanges. Even if they buy outside exchanges, they will need to go for them to sell and do the manipulation stuff.

How will they sell bitcoins off exchange?

I agree with the Op, the hedge funds or Wallstreet can't buy big on the open exchanges without dramatically increasing the price.  

They would buy OTC (Over the Counter).  

Estimates for the FBI purchase was at least $666 considering Second Market's $20 million bid didn't win a single block of BTC.  Long term, this will be a bargain, IMHO.

[furlong]

we need to make it EASIER to buy and withdraw bitcoin

[JimboToronto]

Off exchanged deals still influence price. But they dont make exchanges richer.

+1

[HarmonLi]

I don't know if this is obvious to everyone but these Wallstreet guys won't buy from exchanges.
There is no wall wide enough to support their money and they won't risk losing money by simply buying in the exchanges.

They will contact some large miner or something like that to buy a large amount of coins, doing that off-market will be more secure too.
By doing this i don't know if the price will change so much like everyone is saying.

Of course they're not! That's what Second Market is there for! They offer high-volume clients the possibility of buying large amounts of Bitcoins at once. That's also the reason why we need the Winklevoss ETF. They don't want do do business on the regular 'experimental' exchanges that we have. They want to invest in a way they know and also can - an ETF!

[Kipsy89]

we need to make it EASIER to buy and withdraw bitcoin

I guess that's somewhat true. But those Wallstreet people need their own ways of buying BTC. They don't want to get involved with our exchanges, from what I know, they need this investment vehicles everyone's talking about to get the BTC! Aren't those Winklebergs doing one of those?

[Mobius]

Off exchanged deals still influence price. But they dont make exchanges richer.

+1

Exchanges are not drowning in profits. They have a lot of expenses, mainly compliance related expenses. I think the BTC ETF will likely shift a lot of these costs onto brokerage firms as more trade happens on the ETF and more of the volumes done on the exchanges will be done by APs in large blocks.