00:00 It's Benzinga and here's what's on the block. Coinbase researchers identified two potential
00:04 risks with the launch of spot bitcoin ETFs in the United States. There's a risk that if demand
00:08 for bitcoin is very high to back the ETFs, the issuers may have difficulty acquiring enough
00:13 bitcoin from regulated exchanges and brokers to meet that demand. One popular trading strategy
00:17 is taking advantage of the difference between the spot and futures prices of bitcoin, known as the
00:21 basis trade. As institutional investors gain more direct exposure to bitcoin through ETFs,
00:26 this will likely cause the basis to narrow, reducing the potential profitability of this
00:30 strategy. Overall sentiment remains positive on the long-term impact. For all things money,
00:34 visit Benzinga.com.
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