Great post. While derivatives can be a complex subject, I think the general notion of having EFT's that track (contain) crypto's is an excellent idea.
- Many people would like to be able to diversify in a simple way, where they can simply go to their online brokerage and buy a fund. They know how to do it and are comfortable doing so.
- Crypto trading is complicated unless you are simply buying BTC, ETH or LTC on something like coinbase. This is because you are using other crypto's that change in value in a matter of seconds. It can be an accounting nightmare. If consumers had a choice of buying and selling EFT's with fiat currency, and a broker keeping nice tax records it would make things much easier.
- Because it would be easier to pay taxes more people would do so. How many small investors, especially those that trade, don't pay taxes because they don't know how to. They have no firm idea of what their cost basis is.
- While some criminals may use the underlying cryptos for "bad things", the crypto's being held by large corporations would not be doing anything except holding and trading them. This would reduce the supply for those illegal purposes.
- When more people and business are owners of cyrpto's , the more legitimate they become. Once they become widely held it will be hard for a government to take them away.
EFT's would give crypto's wide spread adoption and give governments their tax revenues and some measure of control. It is also hard to make something illegal when everyone has their finger in the pie. I am glad that the story was a nothingburger.