Why cant gbtc buy more bitcoin to reduce premium

Steeper declines could mean that shares could lose most or all of their value. In Sept. As an investment vehicle which trades over-the-counter, GBTC is available for investors to buy and sell in the same way as virtually any U. Learn other ways to invest in cryptocurrencies like Bitcoin. Because the Trust is currently the only fund of its kind specifically for bitcoin, investors have been paying a high premium. Meanwhile, trading actual Bitcoin means dealing with all sorts of limits and transactions fees.

Japan and South Korea: 0.2%

Advertise Here or Hide Ads. Historically, Peterson said that the bitcoin price has followed the trend of the premium of the Grayscale Bitcoin Investment Trust GBTCan investment vehicle used by accredited and institutional investors to invest in BTC. In the past month, while the premium tk GBTC declined, the bitcoin price has remained relatively stable. GBTC could be considered an indicator of the short to medium term trend of the bitcoin price because it reflects the demand towards the asset from a different market of investors focused around institutions. Now, a gap has opened up .

Titled, auditable ownership through a traditional investment vehicle

Some seasoned investors may be reluctant to get involved in direct investments relating to cryptocurrencies, or digital currencies, since they’re usually highly speculative, the market is largely unregulated, and storing them safely can be challenging. A trust whose shares trade over-the counter on OTCQX offers investors exposure to Bitcoin through the form of a security. This means that investors have access to buy and sell public shares of the Trust under the symbol GBTC. Its success mirrors that of Bitcoin because its value is derived solely from that cryptocurrency. On the other hand, investors are eligible to purchase as little as one share of the GBTC public quotation. As an investment vehicle which trades over-the-counter, GBTC is available for investors to buy and sell in the same way as virtually any U. As an example, GBTC can be traded through a brokerage firm, and it’s also available within tax-advantaged accounts like IRAs or k s.

Hong Kong’s OTC Bitcoin market: 2% to 4%

Related Articles. This means that investors have access to buy and sell public shares of the Trust under the symbol GBTC. Why cant gbtc buy more bitcoin to reduce premium you want to be able to trade quickly and easily from your traditional brokerage account at the expense of limited trading hours and a premium? PR Newswire. Compare Investment Accounts. However, there are still some reasons to choose GBTC over Bitcoin especially if you get in when the premium is low, gbfc when Bitcoin is bullishas the premium increase means you can at the best of times actually outpace BTC gains with GBTC. Silbert has big plans for the Bitcoin Investment Trust, which is expected There is no good answer to what is better. It follows the ideas set out in a whitepaper by too mysterious Satoshi Nakamoto, whose true identity has yet to be verified. New York, Oct. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust’s Bitcoin.