I feel that crypto offers a different risk profile than say the gold ETF. There certainly is significant risk and expense to storing and securing the physical gold backing the ETF. I think it also needed to be audited as matching expected reserves occasionally?
But crypto has similar it and physical security costs at a minimum, though physical storage will be cheaper. Auditing maybe similar costs, I’m not quite sure how you confirm ownership of an address or pile of BTC without transactions?
The big risk is that these big holding companies of bitcoin become targets of state-scale cybercrime hacking armies. Can you imagine an adversary deploying constant attack on every facet of you IT infrastructure, from accessing the private keys presumably stored in hot wallets to support active trading to the interface where they may try interfere with client functions to all sorts of ends from theft to market manipulation.
But crypto has similar it and physical security costs at a minimum, though physical storage will be cheaper. Auditing maybe similar costs, I’m not quite sure how you confirm ownership of an address or pile of BTC without transactions?
The big risk is that these big holding companies of bitcoin become targets of state-scale cybercrime hacking armies. Can you imagine an adversary deploying constant attack on every facet of you IT infrastructure, from accessing the private keys presumably stored in hot wallets to support active trading to the interface where they may try interfere with client functions to all sorts of ends from theft to market manipulation.