If BITO were to trade well above fair value during a hot trading day – say, the day of a long-anticipated premiere for an SEC-regulated bitcoin ETF – an AP could sell shares of the ETF “naked,” effectively short without borrowing (the minimum size the AP can create is 10,000 shares or about $4 million-worth as of Thursday). Simultaneously, the AP could offset much of that risk by buying futures on the CME or even some other bitcoin-related asset (bitcoin itself or shares of MicroStrategy or whatever).
Related posts
-
Bitcoin Technical Analysis: BTC Consolidation Points to Potential Shifts Ahead
On March 29, 2024, with a trading price of $70,075, and oscillating within a 24-hour range... -
Investors focused ‘overwhelmingly’ on bitcoin over other crypto, says BlackRock
BlackRock’s push into crypto has been expeditious, but it may be hitting the brakes after bitcoin... -
On the Halving, Bitcoin is Getting New Technologies: Rollups and Tokens. Sovryn’s New Initiative is How to Get In Early
Sovryn’s and BOB are offering early users a piece of the new Bitcoin economy. With the...