One of Bitcoin's Big Funds is Selling Ahead of the ETF Decision Pete Rizzo (@pete_rizzo_) | Published on March 8, 2017 at 05:41 GMT News While bitcoin prices have edged up sharply ahead of the SEC's upcoming decision on the long-in-the-works Winklevoss Bitcoin ETF, at least one major hedge fund is selling off into the rally. In an email sent today to its mailing list, Global Advisors Bitcoin Investment Fund (GABI), a Jersey-based investment vehicle that buys and sells bitcoin on behalf of investors, said it believes the market is now signaling a potential approval too strongly for its taste. Ultimately, GABI said it believes "it does not seem likely" that investors Cameron and Tyler Winklevoss will receive approval for the vehicle, which they first filed in 2013. GABI wrote in an email today: "Without the ETF launch, should that be the case after that deadline, and with the aforementioned issues in China, we believe the market will be short of a catalyst and will have trapped some overly optimistic long positions. We will continue to reduce our exposure into the decision date." GABI goes on to write that it projects a 25% chance of approval on the decision. Either way, sources tell CoinDesk a decision is likely to happen this week. "If it turns out we are wrong, and the ETF does launch, we will certainly miss a spike and will extend this month's underperformance into next," the statement continues. "We think the ‘bull’ case for bitcoin will be considerably strengthened, and as such, we would expect a very protracted rally in which we will quickly seek to participate," the email reads. Elsewhere, the firm discussed the results of trading decisions earlier in the year, highlighting how its performance has been affected by developments in China, and how it has shifted its strategy in response. Launched in 2014, GABI received regulatory approval for its offering from the Jersey Financial Services Commission (JFSC). Principles for the fund include Jean-Marie Mognetti, Daniel Masters and Russell Newton.
It would be malfeasance to approve bitcoin for trading. If they approve bitcoin , might as well have a Beanie Baby etf to go with it. A little late for that , I admit.
Because gold has been a benchmark of value for 10,000 years in society, and the amount left to discover is unknown. Bitcoin is like 10 years old, and the amount to be found is known. GTFO of bitcoin. It cannot work.
Salt and seashells have also served as stores of value for millennia. It's all about perception. Ps. My "position" in bitcoin is 5 coins - it's not likely to bankrupt me
There are blocksize issues with bitcoin. It can be spam attacked and there are times when 100k or so transactions are frozen indefinitely until the backlog clears out. That isn't good. If there were widespread internet or power outages that could affect the ability to transact bitcoin. There are a handful of chinese miners who control most of the mining for bitcoin. MKT cap way lower than gold. But hey don't look at me I sold my bitcoins at 470 when the network got backed up and it's done nothing but go higher since. It could crash to 300 again just as easily though IMO.
Good points, but you can probably make similar statements about gold. After all, physical commodity has it's drawbacks that we are trying to address the best we can. Easily. In fact, it can go out of vogue all together, though since it's a great way to get around capital and fiscal controls I would expect it to become more and more popular. My view on my 5 coin investment is that it's an option - if it really goes big, it will go big. Worst case I'll lose 7 grand at todays valuation (bought 5 coins back a few years ago for about 600).
Guess what, there's nothing to prevent it. If crazy people want to do crazy stuff, they can't be stopped. Happens ALL the time in the stock market. Just don't think the SEC should bless the insanity.