Thoughts on iShares Bitcoin Trust (IBIT)

I’ve got a recurring investment in IBIT. I think of it as just another form of diversification. If it’s good enough for BlackRock it’s good enough for me and I don’t have to worry about security for my own Bitcoin wallet.

Are BITO or CRPT good bitcoin ETF’s?

quote:

---

Just curious why you would buy bitcoin etfs instead of actual bitcoin?

---

It really takes a decent level of knowledge to buy and hold Bitcoin safely.

Most people don't want to put in the work, so it is easier to just hold an ETF which is pretty damn safe as well.

I think the ETF is a better choice for most people. There is a level of stress involved with being responsible for your own Bitcoin.

quote:

---

If it’s good enough for BlackRock it’s good enough for me

---

Blackrock will sell an ETF of anything if there is enough interest for them to make fees on other people's money.

Just because there is an ETF doesn't mean they are pro or negative any of these securities. They are there to make money.

Blackrock is only the intermediary.

I don’t think BlackRock is going to ruin their reputation “just to make money.” If BlackRock thought Bitcoin was going to implode they wouldn’t touch it with a 10 foot pole. Not worth the reputational damage and following SEC investigation to them. There is some degree of due diligence that has been done on IBIT for them to sell it.

quote:

---

don’t think BlackRock is going to ruin their reputation “just to make money.” If BlackRock thought Bitcoin was going to implode they wouldn’t touch it with a 10 foot pole. Not worth the reputational damage and following SEC investigation to them. There is some degree of due diligence that has been done on IBIT for them to sell it.

---

I think you are making some leaps of faith here.. Blackrock has all sorts of ETFs that are closed all the time. They basically create any sort of ETF they believe their consumers may want. Once they fall out of favor they simply close them.

Why would Blackrock be held liable if the underlying security imploded? Are they held liable when companies are part of their ETFs or commodities that they traded under ETPs crash and burn?

No they are not.

You should try reading the prospectus of this fund and understand the risks they outline.

Hell in the case of ibit they don't even hold the Bitcoin themselves. Coinbase assumes that risk, and in the prospectus they warn the investor if banking or partners fail then obviously investors are at risk

quote:

---

don’t think BlackRock is going to ruin their reputation “just to make money.” If BlackRock thought Bitcoin was going to implode they wouldn’t touch it with a 10 foot pole. Not worth the reputational damage and following SEC investigation to them. There is some degree of due diligence that has been done on IBIT for them to sell it.

---

Ishares will wrap an etf around anything they can find. You’re giving them way too much credit here.

quote:

---

Hell in the case of ibit they don't even hold the Bitcoin themselves. Coinbase assumes that risk, and in the prospectus they warn the investor if banking or partners fail then obviously investors are at risk

---

This is correct. I had to agree to an additional agreement saying I understand and agree to the risk for buying. I don't even believe in bitcoin but I bought a small unsubstantial amount of it out of FOMO. And it's been down sine I bought it in June. Almost back to break even. Probably going to sell this turd if it gets back to break even.

Lol ah yes cointelegraph the most unbiased of financial news.

I will say the the funniest thing to come from these cryptobro threads is that someone introduced me to /r/buttcoin which has been fantastic.

quote:

---

Stupid Crypto Talking Point #3 (inflation) “InFl4ti0n!!!” / “The dollar will eventually become worthless” / “The dollar has lost 104% of its value since 1900!” / “The government prints money out of thin air”

1. The government does not “print money indefinitely”… all money in circulation is tightly regulated and regularly audited and publicly transparent. The organization that manages the money in circulation is the Federal Reserve and contrary to what crypto bros claim, they’re not a private cabal – they are overseen and regulated by Congress. And any attempt to put more money in circulation requires an Act of Congress to increase the debt ceiling – it’s neither arbitrary, nor easy to do.

2. Currency is meant to be spent, not hoarded. A dollar today will buy what it buys. If you hold a dollar for 90 years, of course it won’t buy the same thing decades later (although it might actually be worth significantly more as antique money). You people don’t seem to understand the first thing about how currency works – it’s NOT an “investment!” You spend it, not hoard it!

3. If you are looking to “invest” you don’t keep your value in cash/currency/fiat. You put it into something that can create value like stocks that pay dividends, real estate, etc. Crypto creates no value and makes a lousy “investment.” It also hasn’t proven to be a hedge against anything, least of all monetary inflation.

4. Over time more money is put in circulation – you pretend like this is a bad thing, but it’s not done in a vacuum. The average annual wage in 1900 was less than $4000. In 2023 it’s more than $70,000! There’s more people out there and the monetary supply grows appropriately, as does wages. You can’t take one element of the monetary system completely out of context and ignore everything else.

5. The causes of inflation are many, and the amount of money in circulation is one of the least significant factors in causing the prices of things to rise. More prominent inflationary causes are things like: fuel prices, supply chain issues, war, environmental disasters, pandemics, and even car dealerships.

6. Sure there may be some nations that have caused out of control inflation as a result of their monetary policy (such as Zimbabwe) but comparing modern nations to third-world dictatorships is beyond absurd.

7. If bitcoin and crypto was an actually disruptive, stable, useful technology, you wouldn’t need to promote lies and scare people over the existing system. The real reason you do this is because nobody can find any legitimate reason to use crypto in the first place.

8. Crypto ironically has more inflation in its ecosystem that is even more out of control, than in any traditional fiat system. At least with the US Dollar, money is accounted for and fully audited and it takes an Act of Congress to increase the debt. In crypto, all it takes is a dude printing USDT, USDC, BUSD or any of the other unsecured stablecoins to just print more out of thin air, and crypto-morons assume they’re worth $1 of value.

---

Crypto Stupid Talking points with sources