The Best Bitcoin ETF
The Best Bitcoin ETF
The Bitwise Bitcoin ETF (BITB) May Become One Of The World's Biggest Bitcoin On-Ramps
Editor’s note: Click on images to be taken to corresponding articles and tweets.
When the spot bitcoin ETFs were issued in the US, I referred to them as trash.
Why?
Mostly because none of them offered in-kind redemptions.
What are in-kind redemptions?
In-kind redemptions refers to when you can withdraw the underlying asset from a financial product or wrapper.
For example, if you buy the SPDR Gold Shares ETF (GLD), you can actually request the underlying asset — the gold itself — and it will be shipped to your front door.
The same is not true with the 11 spot bitcoin ETFs that were issued in January of this year.
However, one of the issuers — Bitwise — is currently speaking with policymakers in Washington, DC to make it so that you can redeem the bitcoin from its spot bitcoin ETF — the Bitwise Bitcoin ETF (Ticker: BITB).
I’m a big fan of this. If Bitwise can pull this off, it’s ETF will likely become one of the biggest on-ramps to (actual) bitcoin in the world.
So, if you’re in the US and are going to buy a spot bitcoin ETF, you may want to consider buying BITB. (That’s not financial advice.)
To learn more about this, check out the piece I wrote on Bitwise’s co-founder Hong Kim for Bitcoin Magazine this week:
Another awesome thing about Bitwise is that they donate 10% of proceeds from their spot bitcoin ETF fees to open-source developers who work on Bitcoin Core, the main implementation of Bitcoin’s software, via Brink, OpenSats and the Human Rights Foundation (HRF).
Open-Source Developers
These open-source developers keep the Bitcoin software up to date and functional as it interfaces with different software. Since Bitcoin isn’t a company, there’s no direct way to get paid from “Bitcoin.”
Instead, different organizations and non-profits issue grants to open-source developers to help these developers earn a decent salary as they continue to enable bitcoin’s functionality and create new tools that help bitcoin to function better (e.g., Lightning wallets).
I love the concept of open-source development, because it allows developers from across the world to collaborate on Bitcoin and Bitcoin-related projects.
In recent years, we’ve seen more and more developers coming on board from Africa and other regions in the Global South, which is rad.
₿trust
One of the coolest initiatives that helps to fund open-source developers in these regions is ₿trust Builders, started by Jay-Z (yes, that Jay-Z) and Jack Dorsey, founder of Twitter and Block.
I recently did a little write up on African ₿trust grant recipients for Bitcoin Magazine:
Markets
Bitcoin (BTC) has been chopping sideways for about six months now.
When will it stop chopping sideways and head towards the moon? That’s anyone’s guess.
If history repeats, it will happen in about a month or two.
To learn more about why that’ll likely be the case, learn more about bitcoin’s historical price trends in this piece I wrote for CoinDesk:
As I mentioned in an edition of this newsletter published about a month ago, these seem like good levels to dollar cost average (DCA) into bitcoin.
I wouldn’t say that buying bitcoin at these levels is a bargain, but it’s much better than buying it at $74k, its price just a few months back.
Okay, Frank the Tank is off to hot yoga.
Hope you are all having a great weekend, and here’s to a fantastic week ahead!
Best,
Frank
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Nostr: npub1dnzzyhmewrzkh862z7z2shwmhh5htx0rvkagepj2fkgst9ptwg3qj4x52h
(Translation: Central Banks are about to cut rates prompting a lot more borrowing, meaning a lot more money is about to flow into the system, causing asset prices to rise.)