Bitcoin won’t succeed even after ETF , Castle fund CEO gives reasons..

Spot Bitcoin ETFs come with a set of benefits. These include fewer access challenges for investors and a competitor for the poorly-performing futures-based Bitcoin ETFs, Dan argued.
 
Long-term, however, while ETPs are “a reasonable solution” to the regulatory ambiguity constraining access for most US investors,…..
“Trading volume is only powerful information if it results in creation of new ETP shares (assets in the Trust that the sponsor can charge a fee on).”Dan stated.
The daily volume (in USD) for spot bitcoin ETFs. Source: The Block

•Fewer amount of authorized participants to procreate shares,there by prolonging arbitrage opportunites.

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•Poor asset substitutes there by increasing hedging cost.

LIVE CRYPTO RATES FOR TODAY

Name Price24H (%)
Bitcoin(BTC)
$66,822.94
0.75%
Ethereum(ETH)
$3,238.89
1.41%
XRP(XRP)
$0.55
0.58%
Cardano(ADA)
$0.50
-2.29%
Bitcoin Cash(BCH)
$510.39
-0.74%
Litecoin(LTC)
$85.11
-0.81%
Monero(XMR)
$122.89
-0.73%
IOTA(IOTA)
$0.245884
1.11%
NEM(XEM)
$0.041420
2.56%
Dash(DASH)
$31.54
0.11%

•High borrowing cost and

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•Broker restrictions therefore limiting market markers transacting powers.

Finally,Dan Hoover gave his take as an investor in the bitcoin markets,he would prefer that the BTC held in an ETP be purchased in the market and belong only to the fund or Trust, instead of being borrowed from another party that keeps a claim on the coins.

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Updated: January 22, 2024 — 11:27 pm

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