New Bitcoin ETFs Are A TRAP!

Welcome to the Bleeding Edge. Each week Colin Tedards will share his thoughts, opinions and research where technology intersects with investing.

Today we talk about the new spot Bitcoin ETFs that have come to market from Blackrock, Cathie Wood's ARK Invest and if you should buy the new Bitcoin ETFs.

[stephenjohnson]

The Fidelity etf owns its own btc in cold storage, I’d trust that one before any of the others

[chrisadams]

I agree, however I tend to look at these ETFs differently. I think of it as a way to purchase the asset within accounts where I can't access Bitcoin directly. Whether that be a 401k or Roth IRA what have you... I don't think of it as a replacement for actually buying Bitcoin when you have cash to purchase it directly.

[JonnyD-glcn]

This is a useless diatribe. Your doomsday story only holds true only if you put in the farm in the ETF and only if bitcoin crashes. If bitcoin goes to $200, 000+ and only up, your story is moot. Just like all investments.

[evansd]

If you are going to do it. Go with Fidelity. They own their own crypto. Unlike the others.

[TheQuickyouknow]

The etf not controlling the keys is actually wild.

[DotVlad]

Is there a better way to hold bitcoin in retirement funds?
With all due respect to you, Fidelity, Blackrock and Coinbase are not FTX, and investment into those EFTs is not more risky than investing into MSFT or VOO.

[SejalPatelDrSej]

Use it to buy in retirement account if you wish and cold storage outside of that

[trainluvr]

Coin base is not to be trusted. Had a very bad experience with them. Abysmal security, support farmed out to Indian boiler rooms. People should replay this video if they do not understand what he is talking about.

[agolchehreh]

I can’t find anywhere where it states GLD did 50% worse than physical gold?

[chrismcalister]

If you want to put it in a Roth IRA it genius! Tax free when you cash out. You're paranoid 🤣

[DamondHands]

Can you sell calls on your cold storage bitcoin?

[OliviaPark]

Thank you, Colin, for sharing this insight!! Super valuable!

[HEAVYDUDEYMUSIC]

I wasn't aware that they weren't holding their own keys for the backing of the ETF's other that than being news to me, I didn't disagree with anything you said. Over the past 7 years. I've collected as much bitcoin/crypto as I am willing to purchase with my liquid funds. I am, however investing in the ETF with money that I am contributing to a ROTH IRA. Even if it doesn't perform as well as holding physical bitcoin, I do believe it will well outperform the stock market and that I will see better gains over these first couple of years at the very least. Unlike my cold storage, I'll be more willing to exchange for assest I feel may dip less than Bitcoin during those times. I think it's a decent play with the ROTH personally. I can always sell back to buy the S&P like I had it beforehand. I'll get more conservative closer to retirement. Still got 25+years....

[VinegarMoneyGrows]

As always, if you know what you're doing it's alright. These ETFs are used in tax deferred/sheltered account to get exposure. 0.25% MER is dirt cheap too. Even in regular margin account, trading these ETFs is better than sending coin to exchange, trading and withdrawing back to hardware wallet.

[Anders]

Whoa, not even BlackRock owning any bitcoins? That indeed sounds scary. If in the future Coinbase is having almost all ETF bitcoins then that's one helluva centralization plus what prevents Coinbase from going FTX?

[wread]

They should make a Tulip’s ETF 💐 and only put the top 50 Tulips 🌷 in it. The pink and blue ones are the prettiest so that would help the ETF reach the biggest bubble ever

[DavidwayneCPA]

Excellent update Colin. As a short term trader and not an investor it's all about liquidity getting in and out with minimal slippage.

[erikescalet]

The ETF is just a way to onboard for beginners. It's fine . Not a step backwards because it is a step in institutions investing as well. That will also calm down the volatility. How else would we drive price up ? Bitcoin is for anyone to have purchase and hold . It's a store of value, not a replacement for the dollar. I would only stick with the ETFs that the provider actually has the coins though. Some of the other ones are questionable.

[popyfx]

in germany you get tax benefits for holding your bitcoins by yourself. In fact, after 365 days of holding bitcoin your bitcoins are tax free (fist in first out). Everybody except of firms and Corps should hold their BTCs in their own wallets and should also run their own nodes.

[robot]

Collin you help me so much. Your channel is a public service. Thank you <3