First off, Sasha is a long time bitcoiner, a friend, has done much to advance #bitcoin over the years, and I appreciate her work and dedication.

Second, this is incorrect. Some details on why 🧵

https://twitter.com/sashahodler/status/1800238174528000240

First, need to grok the account-architecture at Coinbase and differences between how the two settle.

IBIT has 2 account types:

1. “Trading Account” (also “Trading Balance Account”)
2. “Custody Account” (also “Vault Balance”)

Txn settlement is different for each of them.

Seen a lot of chatter on this related to IBIT in particular and #bitcoin ETFs in general.

There is some amount of misunderstanding (and some truth) based on what I've seen.

This tweet has 1.1 mm views, so will do my best to clarify below 🧵

https://twitter.com/TylerDurden/status/1790941726544478602

First need to understand how the account-architecture at Coinbase works.

IBIT has two account types:

1. 'trading account' or "Trading Balance Account"
2. 'custody account' or "Vault Balance"

1. is at Coinbase Prime (in Coinbase, Inc.)
2. is at Coinbase Custody Trust Co., LLC

Have had a lot of questions on #bitcoin ETFs since they launched in January.

Links to the most common Questions I've gotten & threads with my answers r below.

If you have more @ me and I'll try to get to them.

For BITB disclosures & prospectus see:
bitbetf.com/welcome How do Bitcoin ETFs interact with / impact the underlying bitcoin market?

Covers Market-Maker Hedging + when ETF buys/sells impact BTC.

https://x.com/teddyfuse/status/1763577899506921632

Lots of you asked about how #Bitcoin ETFs buy (or sell) bitcoin.

I'm going to tweet about $BITB specifically in this instance, so for BITB disclosures & prospectus see:

bitbetf.com/welcome As described here, bitcoin ETFs purchase corn 🌽 on trade date.

That means that each day an ETF has creation (or redemption) orders it buys (or sells) BTC. The day that a creation order is accepted is trade date, or purchase order date.

https://x.com/teddyfuse/status/1763583355994456295?s=20

Have had general Q's on here abt how #bitcoin ETFs are structured and operate.

One thing we @bitwiseinvest have looked forward to for years is that ETFs allow investors to enjoy the full disclosure and transparency requirements of the federal securities laws - lots to read🧵 In order to list and trade on a National Securities Exchange (an exchange that has registered with the SEC under the Securities Exchange Act of 1934), each ETF was required to first have it's listing Exchange obtain approval for a "19b-4" request for rule change

Lots of you asked about how settlement of #bitcoin txns work in bitcoin ETFs, after the ETF buys (or sells) its BTC and how you can follow along.

I'm going to tweet about $BITB specifically in this instance, so for BITB disclosures & prospectus see: bitbetf.com/welcome BITB offers an unprecedented level of transparency and discloses it's bitcoin wallet addresses, which you can find here: bitbetf.com

Have had a lot of questions about how #bitcoin ETFs interact with the underlying bitcoin market throughout the trading day, when ETF buys and sells impact the spot bitcoin market (and how and when the ETF actually gets its bitcoin). Short thread. Have a read through our thread on Alice, the end user, and Mallory, the market maker. We’ll use the same characters.

https://x.com/teddyfuse/status/1760287707018793420?s=20

Have seen some confusion comparing #bitcoin ETF traded volume to net ETF flows.

Couple things:

1. An end user ETF buyer doesn’t buy shares from the ETF. She buys them in the secondary market, which is either a natural seller (another end user selling shares) or a market maker. 2. If that end user buys shares from a natural seller, there is no net activity into / out of the ETF in the primary market (e.g., creations / redemptions, or net flows). If Alice buys 10 shares at the same time Bob sells 10 shares, we have 10 shares of volume, but no net flow.