1- $GBTC makes it a lot easier for institutions and retirement accounts to own Bitcoin. So in a sense, it does increase demand, by increasing accessibility.
Institutions that otherwise would not have been able to buy are now buying thanks to $GBTC (and other similar products).
Institutions that otherwise would not have been able to buy are now buying thanks to $GBTC (and other similar products).
https://twitter.com/dopamine_uptake/status/1329888729109061636
2- Think back to the listing of $GLD; it’s a similar story. Pre-2005, it was almost impossible for institutions to own gold, as only option was physical.
Enter $GLD in Nov’04. It changed the game & ushered in a lot more buying, as more ppl who wanted to buy were able to do so.
Enter $GLD in Nov’04. It changed the game & ushered in a lot more buying, as more ppl who wanted to buy were able to do so.
3- The listing of $GLD in Nov’04 arguably played a role in the ~300% rise in the price of gold between 2005-2011.
We could see the same dynamic play out in Bitcoin (which is thinner and more illiquid than gold), especially as more vehicles for owning Bitcoin come to market.
We could see the same dynamic play out in Bitcoin (which is thinner and more illiquid than gold), especially as more vehicles for owning Bitcoin come to market.
4- And as @hkuppy points out in his piece (which everyone should read), once capital flows into $GBTC, “unlike other ETFs, it isn’t coming out, except through fees to the sponsor. Over time...GBTC will corner the market and squeeze the free float higher.”
adventuresincapitalism.com/2020/07/28/my-…
adventuresincapitalism.com/2020/07/28/my-…
5- And rest assured, lots of capital is flowing into $GBTC...
https://twitter.com/hkuppy/status/1329913452211613699
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