Something’s Really Rotten In Denmark, Part 2

Yesterday should have been a wake-up call for certain earnest folks who actually believe that bitcoin and its mob of crypto imitators is about “money”.

No, sir. When they traded upwards of $1 billion of BITO in a matter of hours and minutes yesterday, the bloom was clean off the roses. After all, is there anything more obviously a product of Las Vegas than a security that has no earnings, no uses and no reason for existence, except to accommodate the brats in mom’s basement who apparently find it more convenient to speculate in BITO via an SEC sanctioned trading platform like Robinhood rather than in BTC tokens on the unregulated crypto exchanges such as Coinbase?

And for all that accommodation, of course, they get an ETF that actually owns nothing—only a promise that its financial architecture based on buying and perpetually rolling mainly the front month BTC futures contract will roughly imitate the short-run price movement of the bitcoin token itself.



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