As the CME’s Volume Gets Pumped, the Bitcoin ETF’s Quirky Structure Could Explain Some of It

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If BITO had been to commerce effectively above honest worth throughout a scorching buying and selling day – say, the day of a long-anticipated premiere for an SEC-regulated bitcoin ETF – an AP may promote shares of the ETF “naked,” successfully brief with out borrowing (the minimal dimension the AP can create is 10,000 shares or about $4 million-worth as of Thursday). Simultaneously, the AP may offset a lot of that danger by shopping for futures on the CME and even another bitcoin-related asset (bitcoin itself or shares of MicroStrategy or no matter).