BitcoinETF on Nostr: Blackrock is not selling while the price of #bitcoin is falling, and other etfs are ...

Blackrock is not selling while the price of #bitcoin is falling, and other etfs are actively selling. On days when other etfs are registering multi-million dollar outflows, #Blackrock shows zero turnover. In essence, a bitcoin etf is a trust, the buyers of whose shares instruct the trust to purchase and store a physical asset (commodity) with a custodian. When investors sell a share, the trust manager must reimburse its cost in accordance with the price of the commodity at the time of sale.

I do not believe that holders of the Blackrock's $iBIT have diamond hands. The essence of the observed phenomenon is most likely that the company itself, understanding the growing deficit and popularity of bitcoin, as well as its current cheapness, buys it from holders of its #ETF.