Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[rolling]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

GBTC is bought and sold using USD. BIT is bought and sold using USD. BIT has to buy and sell bitcoin to keep every share of BIT backed by BTC.

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[HI-TEC99]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

Is it true the first shareholders cannot sell their shares for twelve months and after that the shares can be freely traded?

What percentage of shares (representing bitcoins) can be sold now?

[sAt0sHiFanClub]

Basically, shares of GBTC are created by exchanging BIT for GBTC and destroyed by redeeming GBTC for BIT



BIT holds the bitcoin. There is no fractional reserve. Each share of BIT is backed by 1/10 of a Bitcoin and shares of BIT and GBTC are equal.

But if GBTC is simply the ticker symbol of BIT, what do you mean by the above statements?  

[Ask Ken About Love]

...He should get a hobby. Join a marching band or something.

Those bands that play in funeral processions, are those marching bands?
'Coz if we can get some good chops by next month, we'll play out Bitcoin

http://www.jambalayajazz.co.uk/images/Funeral%20Band%202005.jpg

[rolling]

Basically, shares of GBTC are created by exchanging BIT for GBTC and destroyed by redeeming GBTC for BIT



BIT holds the bitcoin. There is no fractional reserve. Each share of BIT is backed by 1/10 of a Bitcoin and shares of BIT and GBTC are equal.

But if GBTC is simply the ticker symbol of BIT, what do you mean by the above statements?  

Because it is not only a ticker symbol. GBTC represents only those shares of BIT that are for sale. It does not represent every share of BIT.

[ElectricMucus]

how many coins does BIT hold then? any signed address known?

Their financial report says they held 1,382,400 shares or 138,240 BTC as of Dec 31, 2014.

whoo i see..  USG 'licensed' stamp-approval magically legitimizing more paperwork..

Are you seriously saying that Barry Silbert and the Bitcoin Investment Trust don't actually hold the bitcoin?

which bitcoins? who holds what? does barry silbert holds BIT's bitcoins? i dunno. show the bitcoins before asking people to invest. this is ridiculous.

It's roughly the same thing as with Mark Karpeles, only Berry Silbert is slimmer, better dressed and has no cat (I think).

[tarmi]

will a massive dump make you stop talking about Berry?

[ChartBuddy]

Coin
Explanation

[rolling]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

Is it true the first shareholders cannot sell their shares for twelve months and after that the shares can be freely traded?

What percentage of shares (representing bitcoins) can be sold now?

As I understand it, only shares of BIT that have been owned for 12 months can be transferred/deposited/redeemed/converted to shares of GBTC. Once they are GBTC, they can be freely traded on the open market without restriction.

[HI-TEC99]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

Is it true the first shareholders cannot sell their shares for twelve months and after that the shares can be freely traded?

What percentage of shares (representing bitcoins) can be sold now?

As I understand it, only shares of BIT that have been owned for 12 months can be transferred/deposited/redeemed/converted to shares of GBTC. Once they are GBTC, they can be freely traded on the open market without restriction.

Is there any estimate of how many that can be freely traded on the open market without restriction today? It's going to be a damp squib if hardly any can be traded until another year elapses.

[SilenceOfTheLamb]

Hey Bitcoiners, found an age-appropriate instructional video for you!
As disruptive and groovy as your BTC!

http://s1.postimg.org/sfv6b7dv3/Capture.jpg
https://youtu.be/-MlRwjYTKDM

There'll be a quiz

[rolling]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

Is it true the first shareholders cannot sell their shares for twelve months and after that the shares can be freely traded?

What percentage of shares (representing bitcoins) can be sold now?

As I understand it, only shares of BIT that have been owned for 12 months can be transferred/deposited/redeemed/converted to shares of GBTC. Once they are GBTC, they can be freely traded on the open market without restriction.

Is there any estimate of how many that can be freely traded on the open market without restriction today? It's going to be a damp squib if hardly any can be traded until another year elapses.

BIT had 70,000 bitcoin at the end of 2013 so at least 700,000 shares could be put on the market right now but it seems unlikely that everyone would want to sell unless there is a hefty premium. Also, more will mature each month and by Dec 2015, 1,380,000 shares will eligible to be sold.

[Kupsi]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

Is it true the first shareholders cannot sell their shares for twelve months and after that the shares can be freely traded?

What percentage of shares (representing bitcoins) can be sold now?

As I understand it, only shares of BIT that have been owned for 12 months can be transferred/deposited/redeemed/converted to shares of GBTC. Once they are GBTC, they can be freely traded on the open market without restriction.

Is there any estimate of how many that can be freely traded on the open market without restriction today? It's going to be a damp squib if hardly any can be traded until another year elapses.

~92,300 coins were in the BIT a year ago.

https://bitcointalk.org/index.php?topic=337486.msg6449073#msg6449073

[bad trader]

I guess the odds are good we go down from here?

OKCoin:

[Morecoin Freeman]

I guess the odds are good we go down from here?

Yes.

[HI-TEC99]

My reading still is that SecondMarket and other "Authorized Participants" have to buy bitcoins themselves in order to get shares from Greyscale.  Isn t that so?

Only BIT buys and sells bitcoin. GBTC can only create shares when owners of BIT redeem their shares of BIT. You can't deposit bitcoin with GBTC.

Is it true the first shareholders cannot sell their shares for twelve months and after that the shares can be freely traded?

What percentage of shares (representing bitcoins) can be sold now?

As I understand it, only shares of BIT that have been owned for 12 months can be transferred/deposited/redeemed/converted to shares of GBTC. Once they are GBTC, they can be freely traded on the open market without restriction.

Is there any estimate of how many that can be freely traded on the open market without restriction today? It's going to be a damp squib if hardly any can be traded until another year elapses.

BIT had 70,000 bitcoin at the end of 2013 so at least 700,000 shares could be put on the market right now but it seems unlikely that everyone would want to sell unless there is a hefty premium. Also, more will mature each month and by Dec 2015, 1,380,000 shares will eligible to be sold.

I found this post in the secondmarket thread that says they had to stop the redemption process because of a SEC rule. They should have had legal experts scrutinizing the rule book for months before to stop this happening.

...

AIUI no one can redeem shares atm.  They had to suspend redemption because of a technicality in the SEC rules - I think it's because you're not allowed to be simultaneously offering new shares and at the same time offering to redeem old shares.

[SkyValeey]

I love traps for todamoon-bulltards 

[damiano]

only 1,100 back to 254.. just sayin

[Fatman3001]

I love traps for todamoon-bulltards 

[Xiaoxiao]

It's all going down from here for the next 7-10 days?  Could not rebound past 255... market is getting real scared.  Small uptrend clearly broken.