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Sanrith Descartes

Sanrith Descartes

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Mist said:
Speaking of bad bets, I'm poking those IJS shares and they're not doing anything Blazin Blazin
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oh oh Blazin Blazin ...

1705610169376.png
 
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Sanrith Descartes

Sanrith Descartes

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So i did some reaidng and cant come up with an answer. What is the ratio of FBTC shares to BTC. How does it track BTC? Its like 1144:1 on price moves?
 
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sliverstorm

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Sanrith Descartes said:
So i did some reaidng and cant come up with an answer. What is the ratio of FBTC shares to BTC. How does it track BTC? Its like 1144:1 on price moves?
Click to expand...
Cash makes it all a bit wonky. This is all from the SEC filing: Form S-1/A

Initial share price:
On November 30, 2023, FMR Capital, Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, purchased 1 Share at a per-Share price of $40.00 (the “Seed Share”). Delivery of the Seed Share was made on November 30, 2023. Total proceeds to the Trust from the sale of the Seed Share was $40.00. On January 9, 2024, the Seed Share was redeemed for cash and the Seed Capital Investor purchased 500,000 Shares at a per-Share price of $40.00 (the “Seed Baskets”). Total proceeds to the Trust from the sale of the Seed Baskets were $20,000,000. The Trust intends to purchase bitcoin with the proceeds of the Seed Baskets on or before the day the Shares commence trading on the Exchange. As of the date of the Prospectus, these 500,000 Shares represent all of the outstanding Shares. The Seed Capital Investor will act as a statutory underwriter in connection with the Seed Baskets. See “Plan of Distribution” for additional information. The Seed Capital Investor may offer all of the Shares comprising the Seed Share and the Seed Baskets to the public pursuant to this Prospectus.
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Basically, they sold 500k shares for $20M then bought as much Bitcoin as $20M could purchase when trading opened. This had the effect of setting the opening per share price to $40ish. That's probably where you get that weird ratio.

Ongoing:
Then (I'm sure you know this but for general benefit), the ETF works by allowing Authorized Participants to create/redeem baskets of shares (1 basket = 25,000 shares. pg 70), which lets them arbitrage away the price differences between the ETF and the asset, ensuring the ETF's price tracks the asset's price.

Normally APs provide assets for shares (or vice versa) directly, but in this case they have to provide cash due to SEC rules. So Fidelity has to determine cash price of a basket of shares.

To value the baskets of shares, Fidelity re-values all the bitcoin they are currently holding by looking at ~6 exchanges, stack ranking all transactions over the last 60 minutes, and choosing the volume-weighted median price.

1705616160598.png

In this example, the 50th percentile of total volume lies within the volume share at a price of $34,515.13
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So then multiply that by # of bitcoins held, add cash/subtract liabilities if any, divide by # of shares currently outstanding, and that's the basket per-share price for APs.
 
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Borzak

Borzak

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I keep seeing that airlines make a large part of their income now from credit card tie ins and often referred to as credit card companies now instead of airlines. Now that credit cards are laying off I would be concerned that's going to impact the airlines as well.
 
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Locnar

Locnar

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I can't catch a break, seeing how I went in big hoping the fucking DoJ would NOT block the merger. Oh well ,at least this time around i'm not fucking with margin.

edit: damn this shit is up 25 percent in pre market. Now I'm just gonna pray (prey) that Frontier comes back with their original offer to Spirit that Jetblue fucked up with their cash offer. Judge ruled against merger becaues Jetblue was gonna kill off their ghetto style service and hurt the lowest income flyers, but seeing how Frontier is just as ghetto......
 
Sanrith Descartes

Sanrith Descartes

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Locnar said:
I can't catch a break, seeing how I went in big hoping the fucking DoJ would NOT block the merger. Oh well ,at least this time around i'm not fucking with margin.

edit: damn this shit is up 25 percent in pre market. Now I'm just gonna pray (prey) that Frontier comes back with their original offer to Spirit that Jetblue fucked up with their cash offer. Judge ruled against merger becaues Jetblue was gonna kill off their ghetto style service and hurt the lowest income flyers, but seeing how Frontier is just as ghetto......
Click to expand...
Yeah I was gonna post that there is a heavy bounce this morning. Keep in mind, today's move could also be a combo of options expiry and short covering. I would be very wary that this morning's bounce is quite temporary.
 
Sanrith Descartes

Sanrith Descartes

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So I put in two orders at the open this morning. One for ALB at $115 and MP at $15. The ALB order just filled. I like this space long term and feel I just fucked up the entry the last time around. This time though I am splitting the position between both companies (ALB is more established and has a robust EPS, while MP is located in the US and has a lot of upside and the ability to siphon up some government subsidies since its a 'Murican company). I am playing it similar to how I play V and MA. The combined position will be a small quarter sized entry of about 1-1.25% of total portfolio. This isn't a "trade", but a hopefully long term move into the materials sector.
 
karma

karma

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Sanrith Descartes said:
So I put in two orders at the open this morning. One for ALB at $115 and MP at $15. The ALB order just filled. I like this space long term and feel I just fucked up the entry the last time around. This time though I am splitting the position between both companies (ALB is more established and has a robust EPS, while MP is located in the US and has a lot of upside and the ability to siphon up some government subsidies since its a 'Murican company). I am playing it similar to how I play V and MA. The combined position will be a small quarter sized entry of about 1-1.25% of total portfolio. This isn't a "trade", but a hopefully long term move into the materials sector.
Click to expand...
Might wanna skip that MP order?

"Cramer recommended holding onto MP Materials Corp. (NYSE:MP). "I don’t have a catalyst to buy it right now, but it is very, very low," he added."
 
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Rod-138

Rod-138

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Why invest in lame things like planes and materials when you can hop to the moon with AI med tech, Bullfrog!

Which I sadly bought at $5.00 😅
 
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