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Quick review (thread) of diff between a #btc 
ETF (2 new ones receipted in 
this wk) and the 4 existing closed-end #bitcoin funds (incl. $GBTC)
An ETF is more efficient than a closed-end fund because of the creation/redemption feature that occurs on a daily basis at NAV. /2
ETF (2 new ones receipted in this wk) and the 4 existing closed-end #bitcoin funds (incl. $GBTC)An ETF is more efficient than a closed-end fund because of the creation/redemption feature that occurs on a daily basis at NAV. /2
The closed-end funds are re-opened on a sporadic basis using a number of mechanisms including an ATM (At the Market) feature or a syndicated re-opening to include non-QIB buyers, or a Private placement for QIBs. .../3
These re-openings can be dilutive or accretive to NAV depending upon the professional execution (change in #btc price to settle date etc) and selling fees. Generally, an ATM at a 7% premium to NAV or higher is accretive. .../4
price to settle date etc) and selling fees. Generally, an ATM at a 7% premium to NAV or higher is accretive. .../4
Closed-end funds trade at a premium to NAV because the market price is determined as a function of supply/demand. $GBTC has traded at a very high premium due to factors such as the desire to have #btc exposure in broker acct., custody/safety concerns, convenience, and .../5
exposure in broker acct., custody/safety concerns, convenience, and .../5
(perhaps), ill-informed buyers. Premiums on the Cdn closed-end funds are also impacted due to buying from tax advantaged accts.
ETFs will generally have lower all-in fees than the closed-end funds.
Why then would regulators approve closed-end funds before a #btc ETF? .../6
ETFs will generally have lower all-in fees than the closed-end funds.
Why then would regulators approve closed-end funds before a #btc
ETF? .../6
Most likely due to concerns over the liquidity in the underlying asset. So the fact that the OSC has approved #btc ETFs bodes very well for regulatory belief that the market has matured enough to warrant the efficient functioning of the creation/redemption process at NAV.../7
ETFs bodes very well for regulatory belief that the market has matured enough to warrant the efficient functioning of the creation/redemption process at NAV.../7
With the approval of the #btc ETFs, expect closed-end premiums to continue to compress towards zero, and even trade at a discount to NAV. Watch real time premiums at http://bitbo.io .../8
ETFs, expect closed-end premiums to continue to compress towards zero, and even trade at a discount to NAV. Watch real time premiums at http://bitbo.io .../8
The approval of the #btc ETFs is very good for investors and for the underlying asset, as it improves the efficacy of the on-ramp.
IMO, other regulatory jurisdictions are watching closely. Canadian exchanges were after-all, the first to list an ETF of any kind. Giddy-up.
ETFs is very good for investors and for the underlying asset, as it improves the efficacy of the on-ramp.IMO, other regulatory jurisdictions are watching closely. Canadian exchanges were after-all, the first to list an ETF of any kind. Giddy-up.
