Please explain. I am from different trading background..
An ETF is a derivative vehicle which is used to trade anything.
Nobody thinks Bitcoin will get the ETF license. The pros are all laughing. I think it's a done deal and we'll see it in maybe 2 months.
The problem is an ETF is very liquid and Bitcoin is not. This will lead to huge violent ups and downs but also huge upside. This is my personal theory so I could be wrong.
The way it's set up to function is for every 5 ETF share bought on wallstreet, the fund is forced to go out, find and buy 1 Bitcoin.
Herein lies the liquidity problem, millions of shares of the ETF will sell within hours. Where are you gonna get even 1 million Bitcoin on that day? So The ETF - who doesn't care what price Bitcoin goes to, will keep raising up the bid all day long until it finds enough coins.
Likewise, you can't short Bitcoin but you can short an ETF so the swings will be wild and huge. Up to $500, down to $250, up to $1,000, down to $480. And so forth.
Regardless, due to so many people, funds and investors who will want a piece of Bitcoin, there will be massive demand and with only 12 million Bitcoins in existence, $1,000 will come very fast and that will appear like a cheap price when it does arrive.
My ETF 2.0 theory is that Wallstreet will look for another coin just like Bitcoin, but with a bit more liquidity, with which to start another ETF. This is what happened in 1994 with the first Internet stock fund. They first laughed then they s crammed to find any Internet stocks to start more funds.
So I searched and I found an alt coin which I feel will be one of the few survivors - and it should go up 100,000% or close to it.
We shall see if the PhD talking heads are right about this ETF, or me, some noob on the internets.
Good luck!