Bitcoin Investment Trust (GBTC). Bitcoin is sufficiently alien that it can't be swallowed by the traditional financial system; they have no idea how to handle it because it doesn't conform to expectations, counteracting controls, counterparties, risk management layers, checks & balances. They assume custody, oversight, and control, of which Bitcoin expresses none. What they have doesn't work with what is new. Bitcoin is capable of having an ETF; ETFs are quite incapable of encompassing Bitcoin into the current regulatory system. That is a feature, not a bug.
Transcript
[AUDIENCE] What do you think about Bitcoin interfacing with the rest of the financial networks, specifically in the form of exchange-trade funds (ETFs)? Right now, there is one ETF out there. It was predictably trading at a significant premium. Will more ETFs come into existence with bitcoin?
[ANDREAS] So, what is happening with the interface between Bitcoin and the traditional financial system, and why are there not more ETFs? There is only one at the moment. I assume you mean GBTC. It is trading at a significant premium.
And what happens now, why haven't there been more of them? It is because Bitcoin is sufficiently alien that it can't be swallowed by the traditional financial system. They really have no idea how to handle it. Bitcoin doesn't conform to any expectations.
The entire financial system is an edifice of counteracting controls, counter-parties, risk management layers, checks and balances, all of which assume custody, oversight, and control [over people's money]. Bitcoin expresses none [of those]. How, do you take something this alien to the [current] environment? This is exactly like asking [people from] the early 1900s, when the automobile just came out, why are more Pony Express routes not being replaced by automobiles?
[They would say], "Because there are no roads [for them]. But [we have] a series of stations with a lot of hay!" They can't be used for the automobiles. Everything they have doesn't work with what is new. That is basically the issue.
Bitcoin is quite capable of having an ETF. ETFs are quite incapable of encompassing bitcoin in the current regulatory system. They are finding it very difficult to swallow. That is a feature, not a bug.
I hope they choke on it.