00:00Today we're looking at Glitter, GLTR. This is an interesting one. So this holds the four big precious metals physically,
00:08right?
00:08People like to invest in that. So gold is 57%, silver is 35%, platinum, palladium are 3% each.
00:15The reason people like these metals is that they are physically, there's no contango or roll cost. You don't use
00:20futures.
00:20These you can store physically. So there's no weird roll cost. So it doesn't get any dings for that.
00:27There should be green light.
00:27No, here's why. First of all, when you hold a precious metal like gold or silver, you get taxed as
00:34if you own like a commemorative plate.
00:37Like it's like a collectible.
00:38Yeah, it's a weird taxation and it can be a little weird for people. It's not that big of a
00:41deal, but you need to tag it.
00:43Now the premium discount issues, you will see the price of this sometimes veer away from the NAV a little
00:47more than normal.
00:48But it's not really totally a bad thing here. The ETF just uses the gold prices in London at noon.
00:55So the NAV is set at noon. That means the price can actually trade a little more if gold or
01:00silver is coming up.
01:01So I wouldn't hold it against the ETF. But again, those are two things to look out for.
01:05Otherwise, the reason I thought this interesting ETF is this ETF is $3 billion. That's pretty good.
01:10But it's only like 1% of all commodities. This is why I don't think crypto basket ETFs are going
01:15to be that big.
01:16I think people are going to buy Bitcoin like they buy gold, Ether like silver, and then maybe some people
01:21will basket the rest.
01:23But this is a good example of why just packaging it all in one shot may not work when you
01:27get to things that don't have cash flows.
01:28Absolutely, because you're looking at this ETF, which has four holdings, as you said, and the two biggest holdings, gold
01:33and silver, make up the lion's share more than 90%.
01:36So you don't really need palladium and platinum.
01:39Also, most people just like gold. They don't need the rest. Silver's kind of niche and the other ones are
01:44really niche.
01:44The traders like that stuff, but the traders want it unbundled because you lose volatility by packaging it.
01:50So I think the same thing will play out with crypto. I think the baskets will underwhelm.
01:54All right. They're certainly coming out with every variation of crypto ETFs under the sun.
01:57I mean, there's already several Bitcoin-only ETFs, and then they've got to add all the whistles and bells.
02:02Yeah, not to mention crypto-picking ETFs from T. Rowe Price coming out in a couple of weeks.
02:07That should be interesting, too. But, yeah, I don't know if the baskets will be as popular as people think.
02:11All right. We'll see how it all shakes out. Eric, and thank you for that.
02:13And, of course, you can check out the traffic light system on your terminal at BIETFGO.
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