Which etf will best track bitcoin?

Discussion in 'Crypto Assets' started by wxytrader, Oct 11, 2024.

  1. 2rosy

    2rosy

    What happens if your assets get frozen?
     
    #11     Oct 11, 2024
  2. ph1l

    ph1l

    Are you saying the ETF asset manager will keep the fork value for themselves? It seems at least BlackRock wouldn't steal the value:
    https://www.perplexity.ai/search/if-ibit-forks-will-blackrock-s-nl4d4iqtQZOk1PU0X39Lcw
    I think "retained within the trust" means the ETF holders retain the value and would not get rug pulled after a fork.
     
    #12     Oct 11, 2024
    taowave likes this.
  3. Darc

    Darc

    In the past Bitcoin was a totally hidden from the Government asset right? Only Criminals held it mostly.

    Nowadays you pay CGT on Bitcoin like any Stock.

    Does that mean that Bitcoin is now not "hidden" from Governments?
     
    #13     Oct 11, 2024
  4. Who trades Bitcoin? Lol but and hodl only!

    Also the ETF can split but bitcoin can't....fork isn't the same.
     
    #14     Oct 11, 2024
  5. Pekelo

    Pekelo

    7 years ago. Don't tell me you are holding BTC hoping for another split.

    Anyhow, as a counterpoint, you can always cash out of an ETF, not so much if your coin is on an exchange or at home collecting dust.
     
    Last edited: Oct 11, 2024
    #15     Oct 11, 2024
  6. Pekelo

    Pekelo

    #16     Oct 11, 2024
  7. Has that ever happened with an ETF? Don't they have to unwind legally following all kinds of regulations?
     
    #17     Oct 11, 2024
  8. I'm sure the ETFs will know how to handle a fork...basically they just hold both assets until one is adopted by the masses.
     
    #18     Oct 11, 2024
  9. Coin Flip

    Coin Flip

    Dunno about Blackrock.

    In the case of Grayscale ETF, it just says the trust doesn't get the forked Bitcoin cash. It doesn't say whether the Sponsor (which would be the management company) is able to get it.

    Per prospectus https://www.sec.gov/Archives/edgar/data/1588489/000119312524003901/d144925ds3a.htm

    The Bitcoin Network operates using open-source protocols, meaning that any user can download the software, modify it and then propose that the users and miners of Bitcoin adopt the modification. When a modification is introduced and a substantial majority of users and miners’ consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than a substantial majority of users and miners’ consent to the proposed modification, and the modification is not compatible with the software prior to its modification, the consequence would be what is known as a “hard fork” of the Bitcoin Network, with one group running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of Bitcoin running in parallel, yet lacking interchangeability. In addition to forks, a digital asset may become subject to a similar occurrence known as an “airdrop.” In an airdrop, the promotors of a new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the new digital asset for free, based on the fact that they hold such other digital asset. We refer to the right to receive any benefits arising from a fork, airdrop of similar event as an “Incidental Right” and any such virtual currency acquired through an Incidental Right as “IR Virtual Currency.”

    With respect to any fork, airdrop or similar event, the Sponsor will cause the Trust to irrevocably abandon the Incidental Rights and any IR Virtual Currency associated with such event. As such, shareholders will not receive the benefits of any forks, and the Trust is not able to participate in any airdrop.

    In the event the Sponsor seeks to change the Trust’s policy with respect to Incidental Rights or IR Virtual Currency, an application would need to be filed with the SEC by NYSE Arca seeking approval to amend its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency in-kind to an agent of the shareholders for resale by such agent. However, there can be no assurance as to whether or when the Sponsor would make such a decision, or when NYSE Arca will seek or obtain this approval, if at all.

    Even if such regulatory approval is sought and obtained, shareholders may not receive the benefits of any forks, the Trust may not choose, or be able, to participate in an airdrop, and the timing of receiving any benefits from a fork, airdrop or similar event is uncertain. Any inability to recognize the economic benefit of a hard fork or airdrop could adversely affect the value of the Shares.
     
    #19     Oct 11, 2024
  10. Why does it matter a fork isn't free money. You're given both forks because nobody knows which one is going to be accepted by the blockchain or the masses or whatever. So it's not like you can just cash one out and double your money cuz you're risking losing everything.
     
    #20     Oct 11, 2024