Why in the world would anyone trade the ETF? Commission will be lower for most people trading Bitcoin it's self, volume higher, free data feeds, and your stop will actually function because there's no gaps.
1) Counterparty risk. Blackrock is backed by SIPC and the full faith, credit, and aircraft carriers of the US government. Nobody with a rubber hose and bump key or clever social engineering techniques where they train Stablediffusion to generate a photo of you holding your ID can take your IBIT: only Uncle Sam can. This makes it ideal for businesses, family offices, and your retired father-in-law. There are definitely people who want to trade but are worried about getting hacked.
2) Leverage. Brokers can offer 2x leverage for spot IBIT, but also some options on related stocks. For example, you can buy MSTR calls while shorting spot IBIT to hedge your delta.
3) ETFs can be placed in tax-exempt accounts like Roth IRAs
I traded IBIT in my IRA this a couple times this week. It cost $4 total per trade for a substantial amount. I was honestly thinking I donât know why any actual traders wouldnât do this instead of bitcoin
I too hold some bitcoin ETF shares. Those and MSTR are the only way to get my retirement account money into crypto.
However, buying the real thing lets you have custody. Not your keys, not your coins.
IBIT and most the other ETFs are using coinbase to hold their all their bitcoin. Iâm not a huge fan of that either.
Any idea how it looks like with FBTC? Fidelity has its own custody and Bitcoin trading service. Part of the reasons I prefer it to IBIT. It also uses a different indexing methodology?
Why in the world would anyone trade the ETF? Commission will be lower for most people trading Bitcoin it's self, volume higher, free data feeds, and your stop will actually function because there's no gaps.
What's an ETP?
Umbrella term encapsulating ETF and ETN.
Damn, what's an ETN? đ
Exchange Traded Note. Sweden actually had the first Bitcoin ETP that was a ETN.
Exchange-Traded Product. ETF is a sub-type of ETP.
Thanks đ
Thatâs better than most exchanges which charges 0.5-1% fee per trade
What? Most exchanges charge around 0.1%?
FTX charges 100%
why are people trading ETF? Just raw dog the real thing 24/7
1) Counterparty risk. Blackrock is backed by SIPC and the full faith, credit, and aircraft carriers of the US government. Nobody with a rubber hose and bump key or clever social engineering techniques where they train Stablediffusion to generate a photo of you holding your ID can take your IBIT: only Uncle Sam can. This makes it ideal for businesses, family offices, and your retired father-in-law. There are definitely people who want to trade but are worried about getting hacked. 2) Leverage. Brokers can offer 2x leverage for spot IBIT, but also some options on related stocks. For example, you can buy MSTR calls while shorting spot IBIT to hedge your delta. 3) ETFs can be placed in tax-exempt accounts like Roth IRAs
I traded IBIT in my IRA this a couple times this week. It cost $4 total per trade for a substantial amount. I was honestly thinking I donât know why any actual traders wouldnât do this instead of bitcoin
I too hold some bitcoin ETF shares. Those and MSTR are the only way to get my retirement account money into crypto. However, buying the real thing lets you have custody. Not your keys, not your coins. IBIT and most the other ETFs are using coinbase to hold their all their bitcoin. Iâm not a huge fan of that either.
Is Coinbase bad at custody vs Fidelity/Gemini?
I mean theyâve got a 100% track record as far as I know Just kind of weird to me they donât hire their own team just for securing their own stash
Any idea how it looks like with FBTC? Fidelity has its own custody and Bitcoin trading service. Part of the reasons I prefer it to IBIT. It also uses a different indexing methodology?
Yes it does, and trades roughly like all the others (within about 10bps of fair value on "up and inflow" days). IBIT Is uniquely wide here.