Is GBTC a good investment? The Grayscale Bitcoin Trust (GBTC) is currently trading for the biggest discount ever at a 22.7% discount to the underlying Bitcoin value. In this video I give you the pros and cons about this investing opportunity and also update you on the latest news regarding their Spot ETF approval.
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Watch my other videos about GBTC:
- Grayscale Bitcoin Trust (GBTC) hits record discount of over 20%: https://youtu.be/-UxIWmYevt4
- Why Grayscale Bitcoin Trust (GBTC) was BANNED from Interactive Brokers in Switzerland and UK: https://youtu.be/VF-f-Lf7gg8
- GBTC discount/premium: https://flagticker.com/prem-to-nav/GBTC
- Grayscale Bitcoin Trust Details: https://grayscale.com/products/grayscale-bitcoin-trust/
- Grayscale files for Bitcoin Spot ETF: https://twitter.com/Grayscale/status/1450448169511313412
- Grayscale letter to SEC: https://www.sec.gov/comments/sr-nysearca-2021-90/srnysearca202190-9410842-262990.pdf
Here’s a list of all my videos about Bitcoin:
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Meanwhile, as Cointelegraph reported, the Grayscale Bitcoin Trust (GBTC) continues to trade at the largest discount ever compared to Bitcoin’s spot price or net worth. In the meantime, the GBTC to ETF conversion expected this year depends on the tone of US regulators with regard to spot products, which have yet to debut. Although GBTC is a trust that only owns bitcoins, the GBTC share price does not quite match the bitcoin base price. Grayscale Investment Fund debuted as The Bitcoin Investment Trust on September 25, 2013 as a private placement for accredited investors and subsequently received FINRA approval for publicly traded shares.
When considering buying Grayscale Bitcoin Trust shares, it is important to remember that this is not a true common stock. But while confidence closely reflects Bitcoin’s performance, GBTC’s stock price tends to outperform or undervalue Bitcoin’s performance depending on investor sentiment.
This means that investors have access to buying and selling public shares of the trust bearing the GBTC symbol. The trust charges a fairly hefty annual fee of 2%, which is taken from the bitcoins they own, but at the same time is traded for a juicy discount.
Depending on investor sentiment, its shares could sell for more than its assets or less than its total Bitcoin holdings. The GBTC share price generally moves in line with the Bitcoin price.
On January 21, 2020, GBTC became a reporting company to the SEC, registering its shares with the Commission and designating the trust as the first digital currency investment vehicle to receive reporting company status from the SEC.
However, it is the fastest way that stock market investors can access cryptocurrency without actually buying their bitcoins.
Cryptocurrencies come with risks, but buying discounted bitcoins is a smart way to get skin in the game. Publicly traded GBTC shares closed at $30.15, which is more than a 22.7% discount to equity.