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December 05, 2017, 02:12:51 AM

So by settled it means they have to either buy or sell real bitcoin. Otherwise it's just a way for people to just drive prices based on complete fantasy (as opposed to actually having to buy bitcoin for example)

Hm.

No - cash settled. They are betting on the price index. Like the weather futures where they bet on the temperature and what not.

Not quite like the weather, they can not make it snow out of the clear blue sky, but they will certainly have some BTC on the exchanges to defend their bets. Volatility will go through the roof. In the long term honey badger don't care, but we will see some spectacular action, that is for sure.