GBTC Bitcoin Investment Trust Observer

[Kupsi]

The ticker has changed to GBTC now.

http://www.otcmarkets.com/stock/GBTC/profile

[brg444]

The ticker has changed to GBTC now.

http://www.otcmarkets.com/stock/GBTC/profile

Curious to know what is your take on this comment?

In a statement, the Digital Currency Group said, “Although we have been assigned a ticker symbol, no assurances can be given as to when or if such trading will commence, or that an active public secondary market for BIT shares will develop or be maintained.”

[Kupsi]

The ticker has changed to GBTC now.

http://www.otcmarkets.com/stock/GBTC/profile

Curious to know what is your take on this comment?

In a statement, the Digital Currency Group said, “Although we have been assigned a ticker symbol, no assurances can be given as to when or if such trading will commence, or that an active public secondary market for BIT shares will develop or be maintained.”

I guess they must say that until an official announcement. I don't doubt that it will be traded after they got the OK from FINRA and the BIT showed up on OTC Market.

[David Rabahy]

Investor Letter — March 02, 2015 I info@grayscale.co

OTCQX® Update

We are pleased to announce that the Bitcoin Investment Trust's shares (BIT) have been assigned the ticker symbol GBTC by FINRA in connection with its approval of the Form 15c-211 filed by the BIT's market maker. The BIT's sponsor is now finalizing the process of obtaining approval from OTC Markets to allow BIT shares that have been held for at least 12 months to be quoted on OTCQX®, the top marketplace operated by OTC Markets Group, under the Alternative Reporting Standards. In addition, the BIT's sponsor is in the process of making the shares DTC-eligible to facilitate trading once it commences.

We anticipate that the BIT's shares will be eligible to be quoted on OTCQX® and DTC-eligible during the next few weeks, although we can make no guarantees as to exact timing. It is important to note the price of shares traded on OTCQX® will be established by market bids and asks and will not necessarily reflect the BIT's NAV/share or the spot price of bitcoin. In addition, no assurances can be given as to whether an active public secondary market for the shares will develop or be maintained.

As always, qualified accredited investors may choose to invest in shares of the BIT directly through the BIT's ongoing private placement at the daily NAV/share¹. Please note that BIT shares purchased through the ongoing private placement are subject to significant resale and transferability limitations and will not be eligible to be sold on OTCQX® until held for more than one year. BIT shares purchased on OTCQX®, however, are freely tradable once purchased.

Steps to Sell Shares on OTCQX®

Once we obtain the necessary approvals to enable the BIT shares to be quoted on OTCQX®, we will send you further details. In the meantime, please see some information that will be of interest to investors that have held BIT shares for at least 12 months and who will be eligible sell those shares on OTCQX®.

• Our transfer agent, Continental Stock Transfer & Trust, will be mailing each eligible shareholder a share ownership statement.
• This statement will include instructions on how to have your shares electronically transferred via Direct Registration System (DRS) to the broker of your choice.
• Once your shares have been transferred to your brokerage account, you will be able to place an order to sell your shares.
• Shareholders may continue to hold their shares in DRS book-entry form with Continental if they so choose.
• If you have any questions regarding your share ownership statement, if your address has recently changed, or if you have any other questions at this time regarding transferring your shares to your own brokerage account, please contact Continental at (800) 509-5586 or (212) 509-4000.

As always, please also do not hesitate to contact us with any questions or concerns about this process.

To the extent that you do not already have a personal brokerage account and would like to establish one, we would be happy to put you in contact with Merriman Capital, the broker dealer that is both the BIT's initial market maker and its Designated Advisor for Disclosure (DAD).

¹The BIT's NAV/share will be published each U.S. business day on the sponsor's website: www.grayscale.co

[Kupsi]

Thank you for the info David.

So shares need to be 12 months old before they can be sold on OTC Market. It will be fun to see how this develops with limited supply there.

[jl2012]

OP updated

I hope listing on OTCQX will bring some real liquidity to bitcoin market

[uvt9]

I got convinced that the news won't bring any significant impact to the market: http://www.reddit.com/r/BitcoinMarkets/comments/2xlhvr/silberts_bitcoin_trust_gets_finra_ok_to_be_public/

[Fabrizio89]

What does the G stand for?

[thevampireskilledit]

What does the G stand for?

Go Buy The Coin

[Bagatell]

What does the G stand for?

Grayscale Investments?

[BitChick]

What does the G stand for?

Go Buy The Coin

Yes.   

[JorgeStolfi]

So, will shares be eventually redeemable from SMBIT at their nominal value (0.1 of current BTC market price)?  By brokers, if not by original investors?

[yefi]

What does the G stand for?

Nobody knows, but hit it right and your efforts will be greatly appreciated.

[JorgeStolfi]

you disingenuous troll

I am not "disingenuous", I have a very negative view of these bitcoin funds -- more so than of bitcoin itself.  Why should I not ask important questions that no one seems willing to ask?

[ElectricMucus]

So, will shares be eventually redeemable from SMBIT at their nominal value (0.1 of current BTC market price)?  By brokers, if not by original investors?

My guess the only ones who could tell you that is Barry Silbert & Crew.

I think we both know how this ends.

[chriswen]

Anyone know when people will be getting their shares?

[BitAddict]

Anyone know when people will be getting their shares?

In a "few weeks" TM.

[chriswen]

SEC Filings.

http://www.sec.gov/Archives/edgar/data/1588489/000158848915000002/xslFormDX01/primary_doc.xml

March 4th, 2015

Raised $61,915,960

Slightly different from estimate on this graph.

http://www.ic.unicamp.br/~stolfi/temp/2015-02-12-plot.png

[JorgeStolfi]

SEC Filings.
http://www.sec.gov/Archives/edgar/data/1588489/000158848915000002/xslFormDX01/primary_doc.xml
March 4th, 2015
Raised $61,915,960
Slightly different from estimate on this graph.
http://www.ic.unicamp.br/~stolfi/temp/2015-02-12-plot.png

Thanks for the link!

Actually I am surprised that my estimated total investment (~67.8 M$) was so close. 

The graph (magenta line) was computed by adding the estimated net USD investment on each date.  They do not give that data direcly. User @jl2012 estimated the net amount of BTC bought on each date, by the method described on page 1 of this thread. I estimated the net USD investment by multiplying that amount by the NAV on the same date.  Both estimates surely included some error.  All those errors added to about 5900 $, it seems.

Since the net assets are worth ~34 M$, the average investor still has a paper loss, but somewhat smaller than I had estimated: -45% instead of -50%.

[Roy Badami]

So, will shares be eventually redeemable from SMBIT at their nominal value (0.1 of current BTC market price)?  By brokers, if not by original investors?

At a guess (not having seen the prospectus) probably only en masse.  Typically with an investment trust, shareholders can petition to have a winding up vote [probably only possible after some sunset date, though].  If the trust is consistently trading at a discount (i.e. the shares are worth less that the underlying assets) then it's in the interest of shareholders to vote to wind up the trust.  When this happens, the trust has to sell all its assets and distribute the proceeds to the shareholders.  Obviously it's not in the interests of the shareholders to wind up the trust unless the shares are consistently trading at a significant discount (i.e. the shares are worth less than the underlying assets).

Generally this possibility is enough to keep things stable and create confidence in the trust, and make it track the underlying assets, at least very roughly.