tl;dr
With just days left before a spot Bitcoin ETF is expected to be approved by the US Securities and Exchange Commission (SEC), Alistair Milne, Chief Investment Officer (CIO) of Altana Digital Currency Fund, addressed several myths surrounding Spot Bitcoin Exchange-Traded Funds (ETFs). He emphasized th...
With just days left before a spot Bitcoin ETF is expected to be approved by the US Securities and Exchange Commission (SEC), Alistair Milne, Chief Investment Officer (CIO) of Altana Digital Currency Fund, addressed several myths surrounding Spot Bitcoin Exchange-Traded Funds (ETFs). He emphasized the legal and operational frameworks governing spot ETFs, while debunking myths about ETFs watering down the supply of BTC, manipulation, and the trustworthiness of auditing methods. Milne also clarified that spot ETFs actions are purely transactional and involve actual BTC, increasing the proportion of spot BTC traded.
In recent weeks and months, several shockingly false rumors have persisted, painting a false picture of the future with a spot ETF. Milne emphasized the stringent legal and operational frameworks governing spot ETFs and addressed the common myth that spot ETFs could water down the 21 million supply of BTC by injecting “paper Bitcoin”. He stated, “Spot ETFs are legally obliged to invest net inflows in BTC, which will be held by a custodian, fully audited, etc.” Moreover, ETF providers like BlackRock, Fidelity, and Bitwise are ‘seeding’ their ETFs with cash on exchanges to be ready to buy Bitcoin when inflows occur. This is a proactive measure to manage liquidity and maintain the ETF’s performance in line with Bitcoin’s market movements – – but again, no manipulation is taking place.
Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.