- The Grayscale Bitcoin Investment Trust or GBTC is a Bitcoin invested fund and reports to the US(Securities and Exchange Commission).
- The Grayscale Bitcoin investment fund, pools in funds from investors, then buys shares from these funds and list them on the stock market.
- According to Coin glass, as of December 11, the grayscale Bitcoin trust holds 645.55K Bitcoins and Holdings Per Share of $44.96.
Many investors wonder if they could buy Bitcoin through the Stock Market. The answer is yes and through funds like Grayscale Bitcoin Investment Trust.
Founded by Barry Silbert, the Grayscale Bitcoin Investment Trust or GBTC is a digital currency fund and is a way to invest in Bitcoin. In Jan 2020, it became the first one-of-its-kind investment vehicle to report to SEC( Securities and Exchange Commission.)
According to Coin glass, as of December 11, the grayscale Bitcoin trust holds 645.55K Bitcoins and Holdings Per Share of $44.96.
Launched in 2013, Grayscale trades directly on the U.S stock market and offers the investors a trust that gets them BTC exposure. It essentially lets investors trade BTC indirectly through the stock market.
Grayscale Bitcoin Trust offers rich investors to pool in funds, which hold a large number of Bitcoins in shares. Grayscale lists these shares on public stock exchanges where anyone can trade in these shares. Although, only roughly these shares track the value of cryptocurrency.
Advantages Of The GBTC:
- Anyone who finds storing Bitcoin securely a hassle will find The Grayscale Bitcoin trust beneficial.
- Tax regimes that one has to follow for filing tax on profit made on share are much more complicated as compared to gains earned from investing in GBTC.
- The GBTC also renders a more secure alternative for people who hesitate or feel uncomfortable investing large amounts in Bitcoin due to the reports revealing a good amount of Bitcoin trading is fake.
- Risk-Conscious investors can take advantage of price shifts as the GBTC has quite a good exposure on the price of BTC.
Dis- Advantages Of The GBTC:
The biggest drawback of the GBTC is that it demands a high premium cost for entry and also charges an annual fee for trading on it. However, the fee is expected to decrease or even vanish once the competitors of GBTC kicks in; it is one of its kind right now.
The Grayscale Bitcoin Investment Trust, as of Dec 11 holds 645.55K BTC, 3.12M ETH, 12.18M ETC, and 1.57M LTC.
Many competitors have been sprouting, however, none of them yet are able to match its grand level. Nonetheless, it can experience fierce competition in the coming days as many companies are trying to get the approval of BTC ETFs.
The GBTC, however at a higher cost, is offering a way for investors to trade in Bitcoin.