Answer Guy on Nostr: The considerations and implications are a bit more complex than that, from what I've ...
The considerations and implications are a bit more complex than that, from what I've read. But this gist of it is this.
Also spot pricing entails a more complex set of obligations on the part of the ETF management for their pricing of the underlying asset. The excuse in early SEC rejections/delays was, ostensibly, due to concerns about price manipulation.
Given how Tera/Luna, FTX, and others, manipulated the markets — those concerns might not have been entirely unjustified.
I personally suspect that a couple of large, competitive, spot
ETFs are more likely to solve the price manipulation issue than they are to be affected by it to any detriment of their customers. But I could be wrong.
For example whales might gradually pump, then suddenly dump holdings. Low information customers of spot exchanges might be more likely to capitulate near the bottom than individual investors (HODLers).
Thus whales might be able to feed off spot customers be spilling relatively small droplets of blood 🩸 in the market waters 💦
Also spot pricing entails a more complex set of obligations on the part of the ETF management for their pricing of the underlying asset. The excuse in early SEC rejections/delays was, ostensibly, due to concerns about price manipulation.
Given how Tera/Luna, FTX, and others, manipulated the markets — those concerns might not have been entirely unjustified.
I personally suspect that a couple of large, competitive, spot
ETFs are more likely to solve the price manipulation issue than they are to be affected by it to any detriment of their customers. But I could be wrong.
For example whales might gradually pump, then suddenly dump holdings. Low information customers of spot exchanges might be more likely to capitulate near the bottom than individual investors (HODLers).
Thus whales might be able to feed off spot customers be spilling relatively small droplets of blood 🩸 in the market waters 💦