I'm a long time holder of cryptocurrency, but to me it's always been an investment vehicle. With the recent launch of BlackRock's ETFs, I am considering pulling the trigger and moving away from self-custody.
I am confident in my decision, but what I want to understand more is the downfalls of these ETFs in terms of what I want to be investing in. To elaborate, the IBIT and ETHA are both BlackRock's spot ETFs for Bitcoin and Ethereum respectively. From what I understand, a spot ETF is required to actually hold the cryptocurrency itself - that is, buying these ETFs is direct exposure to the Coin.
From viewing comparison tools of BTC-USD vs IBIT and ETH-USD and ETHA these graphs are correlated, but it is not a perfect correlation (70-90%). I want to understand is why it's not a perfect correlation, is it because it's lagging? What else makes these spot ETFs not a perfect correlation that I need to consider in moving away from self-custody?
In simpler terms, if one person held 1 BTC equivalent within IBIT, and another held 1 BTC as self-custody, who would make more money and why (exclude fees), or would any discrepancies be negligible?
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