Bitcoin-denominated ETF that indexes conventional securities?
I don't have a background in finance, but I had this sortof shower-thought yesterday, and I'm wondering if it's been done/is possible, or if there is interest in the idea. The concept itself is probably not feasible from a legal standpoint, due to US securities regulations, but it could be probably be implemented if this is disregarded. The idea is somewhat the reverse of the Winklevoss ETF, so I'll be referring to it as a 'reverse-ETF'. While the Winklevoss ETF trades on a conventional US securities market, with it's underlying value backed by bitcoin assets, the proposed reverse-ETF would hold a conventionally traded security, or an index of securities, as it's underlying asset, with the ETF's trade value denominated in bitcoin and traded on a cryposecurities market (or it's own market if none are sufficiently trustworthy). This proposed financial instrument would provide a way for people who hold bitcoin, to make investments in conventionally-traded companies, without converting their btc into usd. For example, say we create a reverse-ETF for shares of TSLA ($204.56). After acquiring the initial shares (let's say 100 for this example), the ETF creates 1000 colored-coin microshares, which gives each share a value of about $20.46. The initial shares can be acquired through several different means (crowdfunding, private seed capital), depending on the capital available to the ETF's creator. For this example using TSLA, there would be no dividends provided to shareholders, since TSLA currently does not issue dividends. Reverse-ETFs backed by assets that issue dividends would pass dividends through to shareholders proportionally. The microshares could be traded on any existing marketplace that supports colored-coin trading, and the trading value would likely follow the underlying asset's value fairly closely. The ETF's creator can optionally act as a market maker (buying and selling the microshares at a quoted price), at least initially, which would help provide liquidity for early asset holders. If there are no sufficiently secure exchanges, the ETFs creator could consider the creation of their own platform on which to trade their ETF(s) and other instruments of similar nature. While it would require more work and time, it would provide a more secure venue for these potentially high-value assets to be traded. Investors profit after the sale of their appreciated microshares, just like any other currently existing security. Creating this instrument is probably not legal by US securities law (right?). However, disregarding that, I am interested to know what the flaws are in this design, and if this concept is feasible. I have a few shares in various US companies, so I am considering testing this concept among a small group, at least the colored-coins and exchange part. Major issues I've identified: *How to exchange the colored coins once issued *How to enable publicly verifiable possession of underlying assets at all times *Should fees be assessed to cover administrative costs of ETF management (how to conventional ETFs manage this?) *How to automate market making transactions, and how to track underlying asset value
Bitcoin ETFs gibt es per Definition nicht, da es sich bei ETFs immer um die Abbildung eines Index' handelt.Die Abbildung der Marktentwicklung des Bitcoins wird deshalb über einen ETN abgebildet.; ETN = Exchange Traded Note. Ähnlich eines ETCs handelt es sich beim ETN um eine Inhaberschuldverschreibung, die besichert oder unbesichert sein kann. Blockchain ETF bei immer mehr Brokern auf dem Vormarsch. Die Blockchain ETFs werden bei ausgewählten Brokern und Direktbanken angeboten. Genauso zögerlich, wie die Verbreitung von Bitcoin und der Krypto-Technologie selbst vor Jahren vonstattenging, ist dies auch bei den Blockchain ETFs zu beobachten. COIN ETF is a Winklevoss Bitcoin Trust tasked with a simple goal of giving an opotunity to gain bitcoin exposure to traditional stock market investors. By being listed in NASDAQ - COIN ETF is available to investors in U.S. and all arround the world who have access to trading in NASDAQ. The value of the bitcoin ETF is priced based on WinkDex price index. ETFs are usually cheaper than mutual funds as they are usually set up as passive index tracking funds, and they allow investors – even private investors – to gain access to asset classes and niche markets in which it would otherwise be difficult to invest. A Bitcoin ETF, such as the one proposed by the Winklevoss twins, would have the digital currency bitcoin as an underlying asset. That ... Der neue Bitcoin-ETF. Das Produkt mit dem Namen Hashdex Nasdaq Crypto Index ETF wurde in Partnerschaft mit der US-Börse Nasdaq entwickelt und wird an der Bermuda Stock Exchange notieren. Nach Aussagen des Anbieters war diese Wahl auf die dort geltenden Regulierungen zurückzuführen, die die Schaffung des Produkts erst möglich machten.
Ryan Radloff - Coinshares : Bitcoin ETF, ETN, ETP, Financial distribution & bitcoin 2020 potential
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