Crypto ETFs -- will they boost ETN's price down the road?


#1

One thing that might be worth discussing is the impact of ETFs on ETN’s price. At some point – probably within the next few years – there are going to be some index ETFs that track a basket of cryptocurrencies, not just BTC. And when they do, just like any index fund, they are going to have to buy some of each cryptocurrency. If ETN is high enough on the market cap list, and is part of a crypto ETF, that will open ETN to a floodgate of investment from pension funds, retail investors, and everyone in between.


#2

I cant see that they have been in any way beneficial to crypto in general …
I say this as they do not involve a “physical” holding of crypto .


#3

I believe they do hold the underlying assets, Pahini. That’s why so many people are jazzed at the prospect of a BItcoin ETF.


#4

Well that sounds ok then,
I thought it was only Bakkt that held physical assets professor


#5

It is possible that people who invest actually hold BTC, ETN or whatever coin that is on that particular ETF, but the ETF itself is just an index fund. I don’t need to own the crypto coin itself


#6

ETF is making us more connected to the stock market, and i don’t know if that is a good thing for us. other coins with no use case need those types of investment to survive we don’t. We are more likely going to be traded with different financial instruments when we are gaining value above 10$ (guess). Another thing that we might consider is that those that make those packages are the trading elite and the market makers, they will then control the price and trading with pump and dump tactics. The price vil move a lot so swing traders can get profits and we got an unstable price. I hope we can get to a size and level hver they can’t do to much impact so we get a stabile price so our retailers can feel confident in us and see us as a stable currency.

I hope we can go to 200$ and start acting like a stabil coin. ETN wants to be a currency and then it must act like a currency and not like a stock. I think that is a average misunderstanding in many crypto environments, and it also difference on the coins. A coin that is like a contract or do have a use case that is not a currency could be traded as a stock, when a currency should behave like a currency. I think in the future cryptos will be classed and traded in different ways. i think the way they are traded to day will evolve different then we think, and that is a natural evolution of the crypto space. So i don’t think we are ready (ETN) to be dragged into the stock market and that can crush us as a coin and make us disliked by vendors and we lose our use case.

This is my thoughts and i have not made my opinion of right or wrong, but there is some fundamentals and philosophical choices we must decide. ETF might be a warm cup of coffee when we are freezing, but we need a house.


#7

This is an important thing to remember and many don’t understand that and it is an important point.


#8

Do I take a bow for that?
Or a dip?
That was where bakkt was originlly sposed to be different and not subject to same approval as ETFs by the SEC.
It appears they still need approval from the CTFC to happen before they go live with it.
With that said …it is ICE that were talking about so id be pretty confident it will be approved.


#9

Neither a bow nor a dip is necessary. :grin: To my understanding, ETFs (at least in the States) must own a portfolio of stocks/commodities that correspond with what is invested. That is why the recent ETF discussions have concerned, in part, where the physical BTC is to be stored. And a gold ETF like Spider owns gold (and cash). That is why ETFs are good for retail investors — they need not purchase the underlying stock/asset themselves. (Mind you, owning shares of an ETF does not mean you have a right to the actual stock/asset held by the ETF.)


#10

Yes im with you there,
Just seemed the previous rules of ETFs were different.
As you say with U.S.
If its a physical holding requirement the advertising potential alone is very valuable to the cryptosphere.
Another step closer in the direction of mass use.