They poach the NAV but it won't be orderly. This is one of those ETFs that just disappear. I truly hope wxy borrowed to get in this. Now, Moody's downgrades US. My share basket leg of my conversions is 1.1 beta and they are marked down 1.5 AH (synthetics were closed). Monday could be ugly. There are recent downgrade analogs. So what happens to the shitcoins?
That’s hardly a sustained downturn. Get back to us when the entire crypto market goes drastically down for a lengthy period and 50% of the coins effectively go out of existence. Or you can simply have a “lost decade” for crypto where the entire market returns a mere -1% over 10 years.
the dividend idea is no different that Sam's black box. They can only pay a div if the coin posts a gain or they poach. They should keep 20% for future payouts but they ofc don't.
Well at this point I've already collected 50% of my principal in dividends so if something bad's going to happen it would have to happen soon... Seeing as we've just had a large downturn...and dividends (and price) are already recovering, it has weathered the storm just fine. We may have another downturn if this is a double correction but probably a buying opportunity more than a calamity. What's going on in the news? I find no correlation between news and price so I don't pay attention.
As a reversal inside 1% it does 3X risk. Not a good trade IMO but as essentially a commodity/asset class fly it's not going to be juicy like high vol SN.