Are we seeing an uptrend in BTC price as a lot of financial companies trying to cash in BTC ETF by creating services and products related to BTC ETF?
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Are we seeing an uptrend in BTC price as a lot of financial companies trying to cash in BTC ETF by creating services and products related to BTC ETF?
They are products that mirror the pricing and use that as the basis for their asset.
Got it bro, they are doing anything with BTC in that case.
No they simply are building financial products on top of an existing one. No different than what they do with, well everything. That is Wall Street. Creating stuff out of thin air and selling it.
I just wonder that what will they do with BTC, are they using it as a payment source in case of underlying assets are traded under BTC ETF?
So, in other words, BTC ETF is just another name of an approved fund and nothing much of fancy title than has an actual use case.
Not likely. The products they are proposing are derivatives, meaning they have nothing to do with either #bitcoin or the ETF.
So, they are just a contractual binding for trading on behalf of the customers who enter into contracts and later gain some profits.
Yeah. It is like options. The stock, like Apple, is the underlying, so if it goes up or down, the options will likely follow. But owning options has nothing to do with Apple stock or the company.
So they are looking to create products that will use the Bitcoin Spot ETF as the underlying but will not have anything directly to do with it.
Great, this is like playing with price movements and market making under the conditions of a contract except people lose or gain in options, here they will get dividends depending on the assets traded in profits.