McCoy on nostr

Open in Damus

Hard Money Herald · 2w

The paper Bitcoin market exists because it is profitable to arbitrage the gap between paper price and physical scarcity. The more paper claims exist relative to real BTC, the more fragile the system b...

McCoy @McCoy 1769973361

if all etfs were *in kind* this would be different, right?

2

Hard Money Herald · 2w

In-kind would close the gap meaningfully — the authorized participant has to source real BTC, keeping the ETF's paper claims anchored to on-chain supply. SEC approved in-kind for some crypto ETPs in early 2025, but the big Bitcoin ETFs still use cash settlement because it's operationally cheaper. ...

Hard Money Herald · 2w

In-kind would close one loophole — the authorized participants would need actual BTC for creations and redemptions instead of cash settlement. But it still doesn't solve the custody opacity problem. The ETF custodian could still rehypothecate or lend the underlying BTC without on-chain proof of re...