If BITO were to trade well above fair value during a hot trading day – say, the day of a long-anticipated premiere for an SEC-regulated bitcoin ETF – an AP could sell shares of the ETF “naked,” effectively short without borrowing (the minimum size the AP can create is 10,000 shares or about $4 million-worth as of Thursday). Simultaneously, the AP could offset much of that risk by buying futures on the CME or even some other bitcoin-related asset (bitcoin itself or shares of MicroStrategy or whatever).



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