January 24, 2017
as i see it, the problem with this ETF is that bitcoin has no intrinsic value. it is not issued by a government. the underlying asset could become valueless because it is only as good as the counterparty says it is. there have been some rather sudden and fantastic blowups in recent history.
i too have watched the bitcoin story with fascination. but i don't think it belongs in our equities markets.
i think bitcoin runs on the hope of the bitcoin owners, who may be interested because it has minimal interest from governments, because it can be traded across borders.
bitcoin is a currency that is often described in terms of dollars but can fly under the radar by claiming that it is worth $0. the problem is that both are true, depending on the point of view.
i hope that this rule proposal is rejected.