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DEFI - Hashdex (a futures-based ETF exists & proposal is to convert to spot-Bitcoin ETF) GBTC - Grayscale (an illiquid trust exists & proposal is to convert to spot-Bitcoin ETF)
These "ETFs" were really approved as 1933-Act ETPs even though the term "ETF" is used loosely in some names and descriptions. All/most would issue K-1s, not 1099s. For a discussion of 1933-Act ETPs vs 1940-Act ETFs, see the link below. https://ybbpersonalfinance.proboards.com/post/1313/thread
Given the # of insane digital coins out there -- the vast majority are worthless anyway -- I wonder how long before someone creates a 'Sh*tCoin ETF' (yes, that's a real term to describe those digital coins) that invests in whatever digital nonsense coins are trending regardless of their seriousness or value. Now *that* would be a fun ETF to watch from the sidelines, albeit with a healthy dose of dramamine calls and scotch puts Q2H.
These ETPs are barely 1-day old (I will stop calling them ETFs), and already an options-based ETF has been filed for GBTC; others may follow soon.
The firms involved (and there are some big ones) are in it for fees that are collected whether the stuff goes up or down. Remember +3x oil and -3x oil?
Digital/Stable-Coins are a bit different and any related ETF would have to wait a while.
There are reports that Vanguard, Merrill Lynch, etc aren't allowing trading in these ETPs.
These ETPs are barely 1-day old (I will stop calling them ETFs), and already an options-based ETF has been filed for GBTC; others may follow soon.
The firms involved (and there are some big ones) are in it for fees that are collected whether the stuff goes up or down. Remember +3x oil and -3x oil?
Digital/Stable-Coins are a bit different and any related ETF would have to wait a while.
There are reports that Vanguard, Merrill Lynch, etc aren't allowing trading in these ETPs.
to clarify: I wasn't referring to 'stablecoins' (though even there some have imploded recently) ... I was referring to nearly everything showing up on lists like this: https://coinmarketcap.com/all/views/all/
If I *was* to invest in a digital currency I'd stick to the big names like BTC & ETH.
I agree w/those who see/treat these 'products' as speculative and not for everybody.
IBIT prospectus only says that the desire is to be treated as a grantor trust, and if that isn't approved by the IRS, it may be treated as a partnership, and if that isn't approved by the IRS, it may be treated as taxable corporation. It doesn't mention K-1 or 1099.
Comments
So, in time, short spot-Bitcoin ETFs should arrive. Trading in long spot-Bitcoin ETFs starts only TOMORROW (1/11/24).
https://ybbpersonalfinance.proboards.com/post/1313/thread
There's a sucker born any minute, you know.
The firms involved (and there are some big ones) are in it for fees that are collected whether the stuff goes up or down. Remember +3x oil and -3x oil?
Digital/Stable-Coins are a bit different and any related ETF would have to wait a while.
There are reports that Vanguard, Merrill Lynch, etc aren't allowing trading in these ETPs.
If I *was* to invest in a digital currency I'd stick to the big names like BTC & ETH.
I agree w/those who see/treat these 'products' as speculative and not for everybody.
K-1s are doable but are headaches.