$BTC is Incompatible with Wall Street's ETF Biz Model...Let's Keep it That Way!

Issue #43 December 11, 2019

The one thing I believe the SEC and U.S. regulators have continued to get right so far is to deny the multiple applications for a Bitcoin ETF (Exchange-Traded Funds). Wall Street increasingly shows interest in the asset class as one by one traditional macro legends like Raoul Pal, Dan Tapiero, etc. follow their early-adopter peers Mike Novogratz, Dan Morehead, etc. on the bandwagon.

I can’t do a better job explaining it myself than this article (which in my opinion holds truer than ever) and is an important read for your context today. The current non-QE (QE4) that is happening in the REPO (bank-to-bank overnight lending market) is a parallel consequence of the impact that Wall Streets’ love of reusing collateral. We don’t need or want that same dynamic coming into the beautifully designed, far more secure, and future system that is Bitcoin and its future relatives.

ETFs are a great way to make short term gains extracting value from the system that isn’t inherently at scale yet. It is…