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Specialists see no point in Bitcoin-based ETFs

Bitcoiners want to be owners and custodians of their bitcoin (BTC), and not depend on intermediaries to financially expose themselves to this cryptocurrency, something that investment funds (ETFs) based on this cryptocurrency do not allow.

Raoul Pal , well-known investor, pointed out in an interview that an investment fund in BTC-based futures contracts contradicts the preference of users to guard their currencies.

As BTC is a digital and easily custodial asset, Pal thinks that an ETF based on this cryptocurrency does not make sense, as it does with regard to commodities such as gas and oil, which are difficult to store , transport or custody.

In addition, Pal explains that investment funds would make a fortune from arbitrating the price of BTC and the future contract. The investor suggests that it is much better to buy BTC on an exchange and hold the asset long term :

You can actually go to the exchange and buy BTC, just by paying a small commission to the exchange and voila. You have self-custody and no one else is involved. With these investment vehicles, whoever does the arbitration receives his commission, the ETF takes his commission, the lawyers also, the administrators and auditors … they all take a part of your investment!

Raoul Pal, businessman and investor.

«Yes to the Securities Exchange Commission (SEC) If investors really cared, they wouldn’t really allow these future contracts. For commodities they are useful, because you cannot store them, but there is no excuse for Bitcoin », he assured.

A smart investment: if they are not your keys, they are not your coins

In response, bitcoiner businessman and popularizer Preston Pysh agreed with Pal’s comments.

«If you are lazy and you don’t do the work to understand the things you have, then your purchasing power will be worse than that of the person who did the hard work, “he said.

For her part, the macroeconomist Lyn Alden briefly explained in a tweet that exposing yourself to a future contract is not the same as owning the underlying asset.

«Commodity ETFs based on futures contracts are decent for short-term investing, but not very good for those with bullish sentiment. or the underlying asset ”, he said.

As CriptoNoticias reported, yesterday it was known that the SEC approved the first investment fund based on BTC, after days of expectation that probably made the price rise cryptocurrency.


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