Does anyone know how, say Blackrock, issued ETFs on illiquid assets can unravel? 1. People lose faith in it's convertibility or issuer 2. It starts to trade at a discount to underlying assets 3. People attempt to convert the ETF back with Blackrock, who can't b/c illiquidity?
Greshams law says that if you have two currencies with the same govt stated face value, but one has a higher commodity value (i.e. one is made from silver, the other tin), the higher commodity value currency will exit circulation (as people hoard them).
-
-
Afaik, this hasn't happened in ETFs (yet) which is pretty interesting.
Show this threadThanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.