> Transaction costs have nothing to do with sponsor's fee.
This is true, but choosing a particular security based on transaction costs alone can be penny wise and pound foolish. Savvy traders are obviously cognizant of the pernicious effects of high transaction costs, but you don't win as a trader by minimizing transaction costs; you win by delivering risk-adjusted returns. If the structure of a security produces lower returns or adds a high level of unnecessary risk, the transaction cost savings can be moot.
> If you want to trade bitcoins...
I'd argue that it's premature to suggest this is a realistic vehicle to "trade" Bitcoin until we see how well it actually tracks the Bitcoin market. Obviously, it needs to get the green light from the SEC before anyone has the opportunity to do that.
> You can have a substantial sponsor's fee of 1%. Let's say you're comparing the ETF to Coinbase - they have a transaction fee of 1% - then as long as you're making more than one transaction a year, you'd rather trade the ETF.
No, that's not necessarily true. Again, read the prospectus. Unless you fully understand and are comfortable with the risks associated with the structure of this ETF, the possible consequences of how the Sponsor's Fee and other potential expenses are paid, and the potential conflicts between the parties involved, one might have very good reason to chose a service like Coinbase over the ETF.
This is true, but choosing a particular security based on transaction costs alone can be penny wise and pound foolish. Savvy traders are obviously cognizant of the pernicious effects of high transaction costs, but you don't win as a trader by minimizing transaction costs; you win by delivering risk-adjusted returns. If the structure of a security produces lower returns or adds a high level of unnecessary risk, the transaction cost savings can be moot.
> If you want to trade bitcoins...
I'd argue that it's premature to suggest this is a realistic vehicle to "trade" Bitcoin until we see how well it actually tracks the Bitcoin market. Obviously, it needs to get the green light from the SEC before anyone has the opportunity to do that.
> You can have a substantial sponsor's fee of 1%. Let's say you're comparing the ETF to Coinbase - they have a transaction fee of 1% - then as long as you're making more than one transaction a year, you'd rather trade the ETF.
No, that's not necessarily true. Again, read the prospectus. Unless you fully understand and are comfortable with the risks associated with the structure of this ETF, the possible consequences of how the Sponsor's Fee and other potential expenses are paid, and the potential conflicts between the parties involved, one might have very good reason to chose a service like Coinbase over the ETF.