In this segment of Backstage Pass, recorded on Oct.
I did not check the news and last couple of hours, I don’t think it was officially availed, it looks like the SEC is set to allow the first future-based Bitcoin ETF to start trading maybe as early as next week.
That’s what it looks like there.
You can’t buy a pool of Bitcoin and securitize that into an ETF, you have to use your contracts to mimic the price.
I think one of the more obvious benefits, like what you said it makes it easier for people who aren’t maybe completely in tune with the concept of Bitcoin to trade Bitcoin.
But I think there’s this idea of you don’t have to go through a crypto exchange or any other platforms right now you can maybe go through regular brokerage, I guess, because it’s based on futures contracts, if I understand correctly.
I think if someone’s maybe even thinking about investing in Bitcoin and the traditional mode of investing in it has been off putting.
I think if at some point down the road a pure-play Bitcoin ETF ever entered the picture that would be a completely different story though, I think that would be actually really interesting.
Trevor Jennewine: I think risky was a great word to use there I don’t know, I guess I see the advantage if you don’t feel comfortable holding the Bitcoin or you don’t know how to buy it safely, or you want like that day-to-day volatility, I guess, but I think it makes sense.
It’s definitely an interesting situation, but I think that this is going to make it easier for people to lose money.
Bitcoin aside, when you use futures contracts to do something like this, there are higher costs for one, you got to roll these future contracts and get a lot of trading costs in there.
We’re having to see how it goes, I think we’ll see what borrowing and the other announcement from the SEC, I think it’s probably could happen as early as next week.