, Columnist
Grayscale Can Be a Bitcoin ETF
Also Sculptor drama, Citadel interns, 3M bribes and student loan payments restarting.
There are two ways to run a Bitcoin exchange-traded fund:
It seems to me that Approach 1 is, you know, fine and interesting, but Approach 2 is strictly better: It’s simpler for the ETF manager to do, simpler for investors to understand, and has less friction and tracking error. My one quibble with Approach 2 is that you really do have to keep the Bitcoins somewhere safe, and there is a long, long, long history of people in crypto finding exciting new ways to lose their cryptocurrency, but I think that in 2023 “buy Bitcoins and don’t lose them” is the sort of thing that you can expect a regulated financial institution to manage.