GBTC Bitcoin Investment Trust Observer

[mmortal03]

I find the list of participants more interesting than the prices and number of shares, both of which will instantly change when someone decides they would like to sell their "bagholding" BIT shares.

It's the names of the brokerage firms that are placing their clients bids, right?

[1714184617]

1714184617

[JorgeStolfi]

I find it hard to believe that nobody will want to sell.  Surely some will have lost faith and will want to cut their losses, or will need the money for some emergency/

Anyone with $25K lying around to invest in a high risk asset hardly needs any emergency money, lol.  And loss cutters already did so in January.

An "emergency" could be an opportunity to invest in some promising startup, buy a house, etc.

Very few investors had an opportunity to cut their losses.  The maturity period may have been 6 months when the fund started, but it is now 12 months.  Redemptions have been blocked since Oct/2014, and investors were not allowed to sell their shares to anyone else besides BIT.  So the only opportunity for loss cutting was the window between Mar 2014 and Oct 2014 for 6-month maturity shares, or just Sep-Oct 2014 for 12-month maturity.  At that time people may have been more optimistic about future recovery than they are now.  That may explain the relatively small amount of redemptions listed on that report.

[mmortal03]

The main question is why on hell someone on his sane mind would prefer to pay a high premium for the BIT shares, that are worse than bitcon itself, you have to pay maintenance fees and you can only sell in their own platform. If liquidity there dies you are trapped big time.

There are people with ROTH IRA portfolios containing funds that they can't take out without a penalty until retirement age.

[JorgeStolfi]

I find the list of participants more interesting than the prices and number of shares, both of which will instantly change when someone decides they would like to sell their "bagholding" BIT shares.

It's the names of the brokerage firms that are placing their clients bids, right?

Or market-makers building some initial liquidity, in anticipation.

By the way, even if no investors want to sell for the current price, I would think that some should post offers to sell at a sufficiently high price. No?

[Torque]

By the way, even if no investors want to sell for the current price, I would think that some should post offers to sell at a sufficiently high price. No?

What would be the point?  That would be like trying to sell Gold ETFs at a 250% premium to Gold spot price.

[jamesg]

What would be the point?  That would be like trying to sell Gold ETFs at a 250% premium to Gold spot price.

To go short GBTC and make easy money.

[jehst]

I've just received word from one of the shareholders.

 Continental Stock Transfer & Trust, the company responsible for transferring the shares, needs an additional two weeks to verify share ownership and draft the ownership documents.

[Cconvert2G36]

I find the list of participants more interesting than the prices and number of shares, both of which will instantly change when someone decides they would like to sell their "bagholding" BIT shares.

It's the names of the brokerage firms that are placing their clients bids, right?

Market makers on OTC might place both bid and ask orders (two weeks?!?). That's the goal of level II, to provide some liquidity to traders using the exchange. Their compensation for this is derived from maintaining a spread.

[phoenix1]

I've just received word from one of the shareholders.

 Continental Stock Transfer & Trust, the company responsible for transferring the shares, needs an additional two weeks to verify share ownership and draft the ownership documents.

LMAO!!

Apparently they are concerned that if they launch now, some early investors may exit with a profit, so they are delaying until price is lower

[ensurance982]

Two weeks? I see, they are predestined to be the company responsible to perform share transfers in a Bitcoin-related fund. Can't make this up....

[jl2012]

Just want to say that BIT has not updated their page since late March

[DonQuijote]

[windpath]

Will the "shares must be held for a year before they can be converted" always be true?

[JorgeStolfi]

Will the "shares must be held for a year before they can be converted" always be true?

IIRC, that is explained in the SEC filing posted earler in this thread.  

IIRC, the nswer is "yes", but you'd better check.

EDIT: However, that holds for new shares issued by Greyscale to the high-level brokers.  As I understood, those shares will be tradeable immediately, they only cannot be returned to Greyscale.  So the individual investors who bought shares from brokers will not have to worry about that.  It affects only those individuals who bought directly from SecondMarket in the past

[ensurance982]

Will the "shares must be held for a year before they can be converted" always be true?

IIRC, that is explained in the SEC filing posted earler in this thread.  

IIRC, the nswer is "yes", but you'd better check.

EDIT: However, that holds for new shares issued by Greyscale to the high-level brokers.  As I understood, those shares will be tradeable immediately, they only cannot be returned to Greyscale.  So the individual investors who bought shares from brokers will not have to worry about that.  It affects only those individuals who bought directly from SecondMarket in the past

Well, the whole fund is basically created using a loophole, isn't it? I guess it's just things we have to deal with until a 'real' ETF comes around. Better than nothing, I guess

[calaber24p]

Well, the whole fund is basically created using a loophole, isn't it? I guess it's just things we have to deal with until a 'real' ETF comes around. Better than nothing, I guess

Who knows when that will happen :/. Winklevoss twins said they are waiting until regulation before they go ahead with both Gemini or the ETF.

[gotmilk_]

Will we finally see some asks today? 

[jehst]

Will we finally see some asks today?  

No, the shares have not been transferred to the brokerage accounts of eligible shareholders. They are still doing the paperwork. Even if they want to, shareholders can't put up asks until the shares are transferred.

Amateur, yes. But this is bitcoin.

[gotmilk_]

Just want to say that BIT has not updated their page since late March

Someone with twitter account should ask Barry about that. Anyone?  

Will we finally see some asks today?  

No, the shares have not been transferred to the brokerage accounts of eligible shareholders. They are still doing the paperwork. Even if they want to, shareholders can't put up asks until the shares are transferred.

Amateur, yes. But this is bitcoin.

Huh... So your friend is still waiting? I thought we are in 21. century. Kinda unbelievable how much time this takes  


Btw. top bid is now 36$.

[gotmilk_]

Update! 

https://twitter.com/GrayscaleInvest?original_referer=https%3A%2F%2Fcryptocrypt.org%2Findex.php%3Ftopic%3D15.1750&tw_i=587702979760881664&tw_p=tweetembed