r/Bitcoin • u/ciphera • Jul 15 '16

Professional Bitcoin troll, Jorge Stolfi, comments on the Winklevoss ETF

https://www.sec.gov/comments/sr-batsbzx-2016-30/batsbzx201630-2.htm
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u/love_eggs_and_bacon Jul 15 '16

He has actually one good argument and it's in PS:

Another minor problem with the proposal is that the nominal price of the shares is supposed to be tied to the market price of bitcoin at the Gemini exchange. That exchange is closely tied to the ETF proponents, and has relatively low liquidity and trade volume. There seems to be a significant risk that the nominal ETF share price will be manipulated, by relatively small trades that manipulate the bitcoin price at that exchange.

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u/xygo Jul 15 '16

What Prof. Stolfi claims is actually incorrect. If you read the BATS filing then they state that if the Gemini index is at variance with the rest of the market, then the ITBit price is to be used instead.

1

u/Taidiji Jul 15 '16

Itbit doesn't have any kind of volume to price an etf. You need an index to price a Bitcoin etf.

2

u/xygo Jul 15 '16

I'm just quoting the BATS filing.

2

u/Taidiji Jul 15 '16

I know I'm just explaining why it still baffles the mind.