Share: In October 2021, we announced that NYSE Arca filed Form 19b-4 with the Securities and Exchange Commission (SEC) to convert our flagship product, Grayscale® Bitcoin Trust (symbol: GBTC), into a spot-based Bitcoin ETF.
Is Grayscale Bitcoin Trust the same as Bitcoin?
Grayscale Bitcoin Trust gathers money, usually U.S. dollars (USD), from institutional investors and uses that to buy BTC directly. These BTC are stored in the Grayscale fund, which essentially makes the Grayscale institution — rather than its investors — the actual owners of BTC.
Is GBTC same as Bitcoin?
GBTC is not the same as Bitcoin. GBTC is an investment trust or fund which buys and secures Bitcoin on your behalf. When you buy GBTC, you are buying shares of the trust. On the other hand, when you buy Bitcoin, you directly buy the cryptocurrency Bitcoin (BTC) and not shares in a Bitcoin investment trust.
Is there a Bitcoin trust?
The Grayscale Bitcoin Trust (GBTC), for one, has amassed $15 billion in assets. It trades like a closed-end trust, over the counter, and has long traded below its underlying net asset value, or NAV. The private trust is BlackRock’s latest crypto foray.
How much bitcoin does GBTC own?
GBTC holds roughly 3.4% of the world’s bitcoin and is owned by more than 850,000 U.S. accounts, according to Grayscale.
Will GBTC discount go away?
The math does not work in favor of the investor, because there’s no assurance that the discount will disappear now or anytime in the near future, according to Blue. “You can buy GBTC at a 30% discount.
Will GBTC go up?
Based on our forecasts, a long-term increase is expected, the “GBTC” stock price prognosis for 2027-09-10 is 45.901 USD. With a 5-year investment, the revenue is expected to be around +285.08%. Your current $100 investment may be up to $385.08 in 2027.
Can GBTC be converted to BTC?
You can convert Grayscale Bitcoin Trust Tokenized Stock to Bitcoin by trading your GBTC for BTC on a cryptocurrency exchange. Grayscale Bitcoin Trust Tokenized Stock is currently trading on 1 exchanges. The best way to exchange Grayscale Bitcoin Trust Tokenized Stock for Bitcoin is on FTX.
How is GBTC different from ETF?
Unlike an ETF, the trust has no redemption mechanism, meaning that GBTC shares can’t be created and destroyed as demand shifts. As a result, the fund’s price is nearly 30% below the value of its underlying Bitcoin.
What is the new Bitcoin ETF called?
The ProShares Bitcoin Strategy ETF’s (BITO) October 2021 launch kicked off a flurry of new funds coming to market. The SEC had been hesitant to approve Bitcoin ETFs prior to that – in July there were said to be as many as 13 applications waiting for the regulator’s blessing.
How do I report GBTC on my taxes?
If you sold or redeemed an interest in a grantor trust during the tax year, the sales proceeds will be reported on your Form 1099-B. Because these funds are considered “non-covered”, you’ll need to keep track of and report the cost basis info on your Form 8949.
What is the most popular Bitcoin ETF?
The largest Cryptocurrency ETF is the ProShares Bitcoin Strategy ETF BITO with $630.56M in assets. In the last trailing year, the best-performing Cryptocurrency ETF was BITI at –. The most recent ETF launched in the Cryptocurrency space was the ProShares Short Bitcoin Strategy ETF BITI on 06/21/22.
Can anyone buy GBTC?
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.S. security.
How do I buy a Bitcoin trust?
- Install Trust Wallet. You can get an iOS Bitcoin Cash Wallet from the iOS App Store or Download the Android Bitcoin Cash Wallet from the Google Play Store.
- Tap on the Buy button. Select the asset you want to buy, in this case Bitcoin Cash.
- Enter the amount you want to buy.
Who owns the most Bitcoin?
US-based software company MicroStrategy (MSTR) is the world’s biggest publicly traded corporate owner of bitcoin with holdings of about 129,218 BTC, according to its Q1 2022 earnings report. MicroStrategy’s BTC holdings were worth over $3bn, as of 22 July 2022. Tesla (TSLA) is also known to be a holder of bitcoin.
Who are the biggest Bitcoin holders?
The largest fund holding Bitcoin is Grayscale’s Bitcoin Trust, which has 643,572 BTC alongside Coinshares which holds around 42,980 BTC through XBT Provider’s exchange-traded products. Previously, multiple government authorities held a large number of seized bitcoin.
Why is Grayscale Bitcoin Trust trading at a discount?
Shares of the Grayscale Bitcoin Trust were trading at an unprecedented discount of 35% following the Securities and Exchange Commission’s rejection of its application to transition into a spot market Bitcoin ETF.
What is GBTC target price?
Grayscale Bitcoin Trust (BTC) (OTCQX US:GBTC) The 1 analysts offering 12-month price forecasts for Grayscale Bitcoin Trust (BTC) have a median target of 8.35, with a high estimate of 8.35 and a low estimate of 8.35. The median estimate represents a -30.30% decrease from the last price of 11.98.
Is GBTC selling at discount?
Summary. GBTC now trades at a 30% discount to net asset value. Three Arrows Capital, previously a large holder of the shares, has fully liquidated its position.
What is the current discount on Grayscale Bitcoin Trust?
Why can’t I buy GBTC on Vanguard?
Vanguard notified clients today that it would be halting its support for over-the-counter securities. This means that both the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust will no longer be available for purchase. Grayscale has an open application with the SEC to turn the GBTC into a Bitcoin spot ETF.
Is Bitcoin ETF a good investment?
Consider investing in a Bitcoin ETF if… If you don’t want to actively manage your crypto investment, but you want a way to diversify your portfolio with a high-risk, high-reward asset, a Bitcoin ETF is a better option than directly buying Bitcoin.
Can I buy GBTC on Vanguard?
Vanguard customers can purchase any over-the-counter bitcoin or crypto funds, such as the Bitwise 10 Crypto Index Fund (BITW) or Grayscale Bitcoin Trust (GBTC), to name a few. Customers can also buy shares in publicly traded bitcoin mining companies like Riot Blockchain and Argo Blockchain.
How much GBTC equals 1 BTC?
What is better GBTC or BITO?
Here’s the difference. GBTC is a trust that holds bitcoin, but trades like a closed-end fund. Therefore, it can trade at a huge discount or premium to the underlying price to bitcoin, which can either enhance or detract from an investor’s total return. BITO is an ETF that holds bitcoin futures contracts.