Oddbean new post about login | logout Wall St gonna have to wait to get their paper Bitcoin til Tuesday so grandma can have the only asset beating inflation in her portfolio get a 3% allocation. People have no idea how nuts things will get when everyone realizes how retarded portfolio management is.
I have empathy for grandma. The portfolio advice she has followed her whole life, which probably worked well, is now obsolete. And since change is hard and scary, and even more so when tech is involved, she isgoi I have no empathy for grandson who should know better and can do better. Leaving a bulk of ones assets in a custodial platform that closes on the weekends means he is structurally set up to be on the wrong side of FOMO.
Do you think the NPCs will ever figure out that Coinbase is re-hypothecating/fractionally reserving the bitcoin they are holding in custody for the ETFs? This makes the ETFs have a lower value than actually holding bitcoin.
I don’t know that to be true and have seen no evidence to suggest that is the case.
It was an article that was briefly on coindesk that has since been disappeared from the internet. While not true fractional reserving. Coinbase is allowed by the SEC to “float paper” for short periods when ETFs do their weekly rebalancing. This is why the end of the week, Thursday/Friday has generally shown dips since ETF approval. Thus creating a situation for profit-taking by the big players who arbitrage the price difference. Good old market manipulation.