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Why would they not have been able to buy Bitcoin themselves?
by ArtTimeInvestor 6y ago
Why would they not have been able to buy Bitcoin themselves?
- chefkoch 6y agoI would guess it's a too risky investment for them.
- verdverm 6y agoThere's actually a pretty low-risk 40% gain by doing some paperwork and having access to some big player only loans. See my other comment for a link which describes the play in more detail.
- Grustaf 6y agoStarting, not to mention promoting, a large fund takes a lot of work, trust me. I’m not sure what 40% you are talking about though. Not to say that Grayscale is really making the world a better place by providing an actually useful service.
- Grustaf 6y agoBitcoin is still very esoteric, buying bitcoins is nothing like investing in the stock market. A large (or small for that matter) financial institution probably wouldn't want to buy 10 or 100 m worth of bitcoins from Bitmex.
- sarosh 6y agoThere may be issues in their legal structure the prohibit direct investment or their Board feels more comfortable offloading the technology risk to someone else. Alternatively, they may want certain liquidity features (or other options) that may not be directly available.