I know we are getting outside of the scope of fraud here
which is a pet peeve of mine, but this certainly falls under the DD heading. We can move it to the weekend if need be. But I know there are some here that do have this kind of knowledge.
For those that have experience with the construction of futures trading contracts from the ground up, trade contract #1, would an inventory of the underlying commodity be bought up for settlement? Or in the case of a cash settled product, as a hedge?
I'm thinking index products, the underlying securities tend to be bought (or are said to be bought) even though they are cash settled. Obviously Oil and gas get stored and delivered to Cushing and Henry Hub.
could any of recent Bitcoin buying be because of such inventory trades (Plus 10X that number all trying to trade ahead of those buys?)
since the announcement, the line has been smooth and up. No other crypto has done much of anything other than slightly bleed.
And for those that point to the underlying not really existiing, I liken it to an ETN. An index ETN isn't really anything other than a credit product that pays off in a bet on an index. An ETF being an ownership in the underlying product. The ETN simply a promise of the sponsor to pay.