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Discussion in 'The Kruse Longevity Center' started by Jack Kruse, May 21, 2022.

  1. Jack Kruse

    Jack Kruse Administrator

    Guess who was Hillary's CFO and has already been dinged for misappropriating expenses for the fake Dossier. Gary Gensler now at the SEC under Biden was Hillary's CFO who funded the dossier. Could this be why the spot ETF has been delayed because Wall St banks funded both Hillary and Biden's runs to the White House?

    It is another reminder that Goldman Sachs Gary Gensler has a link to explain his inaction on this topic.

    Gensler was a Clinton operative. And he is about as disgusting a political operative as they come - because he was the CFO of Hillary’s campaign when they were fined for misreporting expenses related to their fraudulent funding of the Steele dossier. But he’s looking out got you and your Bitcoin at Goldman's expense???? Promise!

    At the SEC, Gensler hears information from the investment bankers who has worked with before: Gensler said his concerns became more acute over the last year after “several bank executives…shared their concerns with him about the sheer number of depositors who have moved money from their bank accounts into crypto-related exchanges & wallets.

    So it appears his inaction on the spot BTC ETF is related to him pandering to who funds DNC candidates. Just another reason to hate the incumbant party this November.
    John Schumacher, GavinH and JanSz like this.
  2. DebraGM

    DebraGM My Quest for True Health

    So much corruption. Sucks!
  3. Jack Kruse

    Jack Kruse Administrator

    Why has Gensler not approved a Spot Bitcoin ETF?

    Why can't they can’t do this right now? It would blow a hole in FX markets because of arbitrage opportunities via the share creation/redemption mechanism (the special sauce of the ETF wrapper).
    You’re talking about creating a spot ETF here, so to make new shares the Authorized Participant (AP) will have to deliver in-kind — i.e. they need to bring on-chain bitcoin into settlement. The Portfolio Manager of the ETF will upload every day the exact weights — the number of Bitcoin and the amount of USD — to create or redeem one creation unit (CU) of shares in the ETF. Typically, one CU is set at 25k or 50k shares for other ETFs.

    Say the Bitcoin ETF is trading for $20 at NAV and one creation unit is 25,000. So a basket is $500k in market value. It’s spot Bitcoin, so you as an AP need to deliver in kind. (Otherwise, there’s no backing to the claim of “spot”). So, if I’m an AP, and I need to deliver $500k in market value = ~25 Bitcoin. If I can acquire 25 Bitcoin at any price less than $20k, I can pocket that difference as sweet, sweet arbitrage. This is Wall Street. They are the devourers of arbitrage opportunities. Anyway, it can be acquired to create a profit (mining, FX pairs trading, inventory) and as long as it is AML/KYC compliant, it will get done at some point soon, but not now.

    Most likely it nets out at eating away further on energy importing currencies that are in the DXY basket ($JPY, $GBP, $EUR), making their already bad FX problem a lot worse because they all have debased a ton in 2022. Gensler knows this. Moreover, given the coupling of a country’s bonds to its currency, the arbitrage will bleed over into exacerbating the disruption in international sovereign bond markets. These markets have been terrible this year.
    But TL;DR is that the ETF isn’t happening right now because of the volatility in the Fx and bond markets linked to DXY. The US would blow apart its coalition partners in the FX and bond markets when they’re already on very shaky ground AND geopolitical conflict is escalating by the day.

    Some will ask why do spot ETFs already exist in markets outside the US if this is so bad. Why isn't it already being done or why is risk greater for US BTC ETF?
    ANSWER: Because it’s USD and the onshore dollars of the US economy. Those spot ETFs settle in their own currencies.
    GavinH and John Schumacher like this.

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