GBTC Bitcoin Investment Trust Observer

[mmortal03]

Tyler Durden doesn't understand how GBTC works: http://www.zerohedge.com/news/2016-05-22/biggest-bitcoin-arbitrage-ever

[kehtolo]

Tyler Durden doesn't understand how GBTC works: http://www.zerohedge.com/news/2016-05-22/biggest-bitcoin-arbitrage-ever

70 bucks now per share 

[GGALINff]

this thing has moved in both directions prior to BTC underlying movements

right now,  it is saying BTC will go up

[GGALINff]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

[mmortal03]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

It touched $80 for a bit there.

[sandiman]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

It touched $80 for a bit there.

So why is no one (or at least not enought people) arbitraging the latter?

[kehtolo]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

It touched $80 for a bit there.

So why is no one (or at least not enought people) arbitraging the latter?

I think it has to do with being locked into the investment for 12 months or something.. so arb'ing is impossible apparently.

[marcus_of_augustus]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

It touched $80 for a bit there.

So why is no one (or at least not enought people) arbitraging the latter?

I think it has to do with being locked into the investment for 12 months or something.. so arb'ing is impossible apparently.

so it is in essence acting like 1 year call option on bitcoin price and that makes more sense for its current premium than the IRA tax advantage explanation (which may contribute to the premium but not that much imo).

[zimmah]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

It touched $80 for a bit there.

So why is no one (or at least not enought people) arbitraging the latter?

I think it has to do with being locked into the investment for 12 months or something.. so arb'ing is impossible apparently.

yeah there's huge restrictions to BIT.

you have to have a lot of money, you can't sell shares until after a long period of time has passed, and i think you have to meet some requirements before you are even allowed to buy in the first place.

it's not a liquid market at all

[LFC_Bitcoin]

I remember thinking this would be bullish for bitcoin, turns out it's nothing to be interested in.

[sandiman]

if BTC holds up through Monday - wonder what the GBTC opens at?
60% premium would be over $80 per share

It touched $80 for a bit there.

So why is no one (or at least not enought people) arbitraging the latter?

I think it has to do with being locked into the investment for 12 months or something.. so arb'ing is impossible apparently.

yeah there's huge restrictions to BIT.

you have to have a lot of money, you can't sell shares until after a long period of time has passed, and i think you have to meet some requirements before you are even allowed to buy in the first place.

it's not a liquid market at all

So there is basically no interest in comparing both, and if there was one, GBTC would be like one of the most lagging indicator for btc ?

[Vlad2Vlad]

COIN.  COIN is the one that's gonna blow the top off it all.

[Gatekeeper]

$94.50 todays high  

I remember some people talking about buying in at something like $31 and getting friends to buy in too, quite the investment huh, triple your money in such a short time. People talk about the premium but 3x your money is a better return than if you'd bought coins normally, we've only gone up about 2.5x

[David Rabahy]

I got in through BITS at around $700/BTC which is like $70/GBTC so I am indeed happy to see the exchange rate north of that *but* it is just a paper gain until it is sold.  Or is it?  Wisdom says exit an investment after a gain (sell high) but what if higher is coming?  Wisdom says pigs get fat, hogs get slaughtered and that can be a very real concern.  I'm watching the percentages of my investments.  When my non-retirement BTC and retirement GBTC combined values exceed something like 20% of my total wealth then I will consider taking some profits *but* where does one park it?  I'm looking for a better investment than Money 2.0?  Tough.

[iCEBREAKER]

When my non-retirement BTC and retirement GBTC combined values exceed something like 20% of my total wealth then I will consider taking some profits *but* where does one park it?  I'm looking for a better investment than Money 2.0?  Tough.

Diversify Money 2.0 profits in gold/silver (Money 1.0) and Monero (Money 3.0).

Re-balance as needed to avoid being under/over-exposed to any one sector.

[uvwvj]

$94.50 todays high  

I remember some people talking about buying in at something like $31 and getting friends to buy in too, quite the investment huh, triple your money in such a short time. People talk about the premium but 3x your money is a better return than if you'd bought coins normally, we've only gone up about 2.5x

That would be me old friend.

 

[ImI]

COIN.  COIN is the one that's gonna blow the top off it all.

COIN won't come imo.

[sandiman]

COIN.  COIN is the one that's gonna blow the top off it all.

COIN won't come imo.

What is that?

[ImI]

COIN.  COIN is the one that's gonna blow the top off it all.

COIN won't come imo.

What is that?

Winklevoss Bitcoin-ETF

[gentlemand]

Surely if Bitcoin continues to grow at some point a 'proper' ETF will arrive, even if it isn't the Winklevoss one. It may be many years away yet though.