The Case for a Bitcoin ETF
To put this into context, I checked several leading websites for buying or selling gold coins or rounds and the average spread between buying and selling was over 4%. It is certainly possible that for larger-sized orders that the spreads might have been smaller, but it seems unlikely to have been much tighter. That contrasts with a bid-offer spread, inclusive of retail exchange fees for bitcoin that average well under 1%, even for order sizes as large as 500-1000 bitcoin (larger than an ETF creation or redemption unit). For example, as I write this, the per-coin cost to buy 500 bitcoin across regulated exchanges, net of (retail level) fees, is $8,491 (calculated using CoinRoutes software), while the per-coin cost to sell 500, net of the same fees, is $8,438 (2). Using our patent-pending RealPrice mechanism, we could stream the price to redeem or create a full bitcoin ETF in real time, which is a level of transparency well beyond many underlying assets who have approved ETFs.