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The ETF angle makes no sense to me. An ETF is designed to be based against a basket of securities. A bitcoin ETF seems really pointless. Why not just gamble on

The ETF angle makes no sense to me. An ETF is designed to be based against a basket of securities. A bitcoin ETF seems really pointless. Why not just gamble on the token itself? I see this as a means to sucker more retail cash in and have the early adopters of Bitcoin hoover it up. For the record, my statement as of right now is still true. Remember that Bitcoin peaked at nearly 69k a piece and it’s currently at around $42k a piece.

deweller 3y ago
Because IRAs cannot purchase BTC directly.
- EternalUsenet 3y ago
  I can’t imagine why I would want to purchase BTC on a vehicle intended for retirement savings. This is absolutely asinine to me and I see so many people losing their shirts and could be rife with abuse. If people really want to, they can gamble their money away at Coinbase. This is really feeling like tragedy of the commons and needing to find more ways to pull in real money into this system so whales can swim in their piles.
  - gruez 3y ago
    >I can’t imagine why I would want to purchase BTC on a vehicle intended for retirement savings. No capital gains, for one. "Buy BTC for my IRA" =/= "Bet my entire retirement fund on BTC"
    - EternalUsenet 3y ago
      I never said entire retirement fund. Way to put words in my mouth. I mean having access to this at all is going to allow degenerate gamblers to have an avenue to spend on BTC and the contagion will spread further, like a self fulfilling prophecy. Also, the halvening I imagine will be a very bad thing for miners, unless it’s guaranteed to double in price, miners are going to suddenly make less in value after the event occurs. Just because the halvening happened to behave a certain way in the past doesn’t guarantee future results.
      - gruez 3y ago
        >I never said entire retirement fund. Way to put words in my mouth. I mean having access to this at all is going to allow degenerate gamblers to have an avenue to spend on BTC and the contagion will spread further, like a self fulfilling prophecy. You asked for good reasons why someone would put BTC in an IRA, and I gave you one. Whether or not "degenerate gamblers" would follow that advice is moving the goalposts. You can responsibly use your IRA to buy stocks as well, but that's irrespective of whether "degenerate gamblers" would abuse that. >Also, the halvening I imagine will be a very bad thing for miners [...] Are you replying to the wrong comment? I thought we were talking about IRAs?
  - chomp5977 3y ago
    No one who has bought and held Bitcoin in self custody has lost their shirt.
    - deleted 3y ago
      [deleted]
    - ur-whale 3y ago
      > No one who has bought and held Bitcoin in self custody has lost their shirt. Yup. Better yet, they own Bitcoins.
  - cykros 3y ago
    If you saw what sorts of stocks people put in their IRA's, putting Bitcoin in there would be the least of your concern. Remember GME, AMC?
gruez 3y ago
>An ETF is designed to be based against a basket of securities. A bitcoin ETF seems really pointless. Why not just gamble on the token itself? Dunno, maybe you should ask State Street Global Advisors[1] or Blackrock[2] why they have gold ETFs, when investors could just gamble on the yellow stuff itself. [1] https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-gold-shares-gld https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-gold... [2] https://www.ishares.com/us/products/239561/ishares-gold-trust-fund https://www.ishares.com/us/products/239561/ishares-gold-trus...
cykros 3y ago
You can't just put BTC into your Roth IRA. You can, however, buy a Bitcoin ETF in your Roth IRA. Or SEP, SIMPLE, many 401(k)'s, Traditional IRA, or any other number of accounts that actually ARE covered by SIPC insurance (which your crypto wallet isn't). There's a good chunk of money that for regulatory reasons CAN'T touch it until it hits this structure.

deweller 3y ago

Because IRAs cannot purchase BTC directly.

EternalUsenet 3y ago
I can’t imagine why I would want to purchase BTC on a vehicle intended for retirement savings. This is absolutely asinine to me and I see so many people losing their shirts and could be rife with abuse. If people really want to, they can gamble their money away at Coinbase. This is really feeling like tragedy of the commons and needing to find more ways to pull in real money into this system so whales can swim in their piles.
- gruez 3y ago
  >I can’t imagine why I would want to purchase BTC on a vehicle intended for retirement savings. No capital gains, for one. "Buy BTC for my IRA" =/= "Bet my entire retirement fund on BTC"
  - EternalUsenet 3y ago
    I never said entire retirement fund. Way to put words in my mouth. I mean having access to this at all is going to allow degenerate gamblers to have an avenue to spend on BTC and the contagion will spread further, like a self fulfilling prophecy. Also, the halvening I imagine will be a very bad thing for miners, unless it’s guaranteed to double in price, miners are going to suddenly make less in value after the event occurs. Just because the halvening happened to behave a certain way in the past doesn’t guarantee future results.
    - gruez 3y ago
      >I never said entire retirement fund. Way to put words in my mouth. I mean having access to this at all is going to allow degenerate gamblers to have an avenue to spend on BTC and the contagion will spread further, like a self fulfilling prophecy. You asked for good reasons why someone would put BTC in an IRA, and I gave you one. Whether or not "degenerate gamblers" would follow that advice is moving the goalposts. You can responsibly use your IRA to buy stocks as well, but that's irrespective of whether "degenerate gamblers" would abuse that. >Also, the halvening I imagine will be a very bad thing for miners [...] Are you replying to the wrong comment? I thought we were talking about IRAs?
- chomp5977 3y ago
  No one who has bought and held Bitcoin in self custody has lost their shirt.
  - deleted 3y ago
    [deleted]
  - ur-whale 3y ago
    > No one who has bought and held Bitcoin in self custody has lost their shirt. Yup. Better yet, they own Bitcoins.
- cykros 3y ago
  If you saw what sorts of stocks people put in their IRA's, putting Bitcoin in there would be the least of your concern. Remember GME, AMC?

gruez 3y ago

>An ETF is designed to be based against a basket of securities. A bitcoin ETF seems really pointless. Why not just gamble on the token itself? Dunno, maybe you should ask State Street Global Advisors[1] or Blackrock[2] why they have gold ETFs, when investors could just gamble on the yellow stuff itself. [1] https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-gold-shares-gld https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-gold... [2] https://www.ishares.com/us/products/239561/ishares-gold-trust-fund https://www.ishares.com/us/products/239561/ishares-gold-trus...

cykros 3y ago

You can't just put BTC into your Roth IRA. You can, however, buy a Bitcoin ETF in your Roth IRA. Or SEP, SIMPLE, many 401(k)'s, Traditional IRA, or any other number of accounts that actually ARE covered by SIPC insurance (which your crypto wallet isn't). There's a good chunk of money that for regulatory reasons CAN'T touch it until it hits this structure.