I find the insurance piece of the Bitcoin ETF fascinating. So it the ETF gets hacked, the holder do not loose money...??? Their must be a high principle paid on that investment.
I am not sure how I feel about liquidity in an etf. Once the funds are locked into the etf, would they not be removed from the market?
If I was insurance co I would force them to change wallets everyday to avoid a lucky brute force attack
I think they will be forced to implement cold storage in vaults for the most part..
Exactly. Some ETF's will cover all possible losses of BTC, and others may offer a slightly more focused insurance. This will be reflected in the Annual Management Charge.
The ETF's will be balancing incoming and outgoing investments in the BTC markets. There will be an initial surge in buying, which will eventually calm down with profit taking and liquidation. Generally, we will see much more active volume on the buy side and sell side in the future...
Of coarse, there will be a certain balance of BTC taken out of the market permanently...