GBTC Bitcoin Investment Trust Observer

[megadeth]

Insiders pricing in future ETF approvals?

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[LFC_Bitcoin]

Insiders pricing in future ETF approvals?

Not sure but it's been a big flop as far as I can see. Promised so much yet delivered so little.

Disappointing.

[mmortal03]

Insiders pricing in future ETF approvals?

Not sure but it's been a big flop as far as I can see. Promised so much yet delivered so little.

Disappointing.

In the past year, it's up 210%. That's significantly better than the Bitcoin price.

[European Central Bank]

The GBTC price has been dropping since July 15th, a total of ~$30 per share (meaning ~$300 per bitcoin), which was a few days after the SEC cease and desist. In the same time period, the Bitcoin price has only dropped ~$30. Any theories?

isn't big price movement mainly down to it being a much smaller and less liquid market? its link to the raw bitcoin price is relatively far removed when you take into account all the factors in obtaining and trading it.

Insiders pricing in future ETF approvals?

if they knew something, and surely no one does, not even the people who might approve it, i think we'd be seeing alot more real bitcoin action.

[Yakamoto]

Insiders pricing in future ETF approvals?

Not sure but it's been a big flop as far as I can see. Promised so much yet delivered so little.

Disappointing.

In the past year, it's up 210%. That's significantly better than the Bitcoin price.

It might be better based off of that number, and that's because of the ETF getting in on the value of Bitcoin while it was going up during the past 7 months, but the trend for the ETF is going to mellow out very quickly, especially if Bitcoin doesn't go anywhere for a while. It's not bad though, being worth 2.1x the amount you were 12 months ago. I know a lot of companies that would kill for those kinds of numbers to put on their sheets.

[mmortal03]

Insiders pricing in future ETF approvals?

if they knew something, and surely no one does, not even the people who might approve it, i think we'd be seeing alot more real bitcoin action.

Yeah, the idea is that they'd be buying BTC proper, as the price is predicted to go up if COIN or XBTC gets approved (due to the predicted new investment demand coming in from the stock market).

Instead, the BTC price just dropped.

Mind you, it seems that the BTC price always drops whenever good news comes out.

[mmortal03]

It could just be a coincidence, but the GBTC selloff last week might be seen as a signal that someone knew ahead of time that all the chaos that went down today was going to go down.

[mmortal03]

http://moneymorning.com/2016/09/09/why-the-first-bitcoin-etf-could-double-the-price-of-bitcoin/

[sandiman]

http://moneymorning.com/2016/09/09/why-the-first-bitcoin-etf-could-double-the-price-of-bitcoin/

winklevoss already have huge amounts of BTC (around 300k)

[LFC_Bitcoin]

http://moneymorning.com/2016/09/09/why-the-first-bitcoin-etf-could-double-the-price-of-bitcoin/

winklevoss already have huge amounts of BTC (around 300k)

They're huge players in this game, they will stand to make obscene amounts of money if this ETF can finally get approval (at some point in our life time )

[zimmah]

http://moneymorning.com/2016/09/09/why-the-first-bitcoin-etf-could-double-the-price-of-bitcoin/

winklevoss already have huge amounts of BTC (around 300k)

do you really think the winklevoss will sell their own bitcoin?

Sure they might sell some of it, but I'm pretty sure the winklevoss plan to drive up the value of bitcoin so that their insane stash will be worth much more. And they'll probably be about the richest persons on the planet.

I think they use most of the 300k stash as a buffer, so that they can re-buy bitcoin when it's profitable to do so, and just sell some of their own stash to the ETF when bitcoin is prohibitively expensive. So that they can leverage even more from their own ETF than they would have been able to do if they didn't ave that stash.

Even if they didn't want the price of bitcoin to increase, they would want the price of their ETF to increase, so that their investors would be happy. But since the two are linked, the rise of their ETF price will result in driving the bitcoin price up and vice-versa. So either way, directly or indirectly, the winklevoss have a high stake in making sure the bitcoin price goes through the roof.

[mmortal03]

GBTC's at its lowest percent difference compared to the BTC price since the middle of April.

[mmortal03]

GBTC's at its lowest percent difference compared to the BTC price since the middle of April.

Hmm, and now, yesterday, it was the lowest percent difference since the end of March.

[mmortal03]

Oh, look, GBTC is no longer insured: https://www.reddit.com/r/BitcoinMarkets/comments/5im4x2/gbtc_premium/db9o1c0/

[David Rabahy]

I will research it.

[David Rabahy]

https://blog.xapo.com/what-would-happen-if-xapo-got-hacked/

[mmortal03]

GBTC's at its lowest percent difference compared to the BTC price since the middle of April.

Hmm, and now, yesterday, it was the lowest percent difference since the end of March.

Lowest percent difference today since the end of February.

[megadeth]

GBTC new ATH established.

[Chainsaw]

http://finance.yahoo.com/news/grayscale-investments-llc-ceases-private-140000550.html

I'm unclear on the meaning of this.
Are they suggesting that GBTC will use a different mechanism for purchasing shares going forward, or that they will no longer be maintaining the 10:1 ratio and instead letting the investment center around the number of coins currently held by the trust?

[xyzzy099]

http://finance.yahoo.com/news/grayscale-investments-llc-ceases-private-140000550.html

I'm unclear on the meaning of this.
Are they suggesting that GBTC will use a different mechanism for purchasing shares going forward, or that they will no longer be maintaining the 10:1 ratio and instead letting the investment center around the number of coins currently held by the trust?

They appear to be doing some kind of IPO of up to $500,000,000 dollar value, according to the document, and changing the way the shares work.

https://www.sec.gov/Archives/edgar/data/1588489/000119312517013693/d157414ds1.htm

Prior to this offering, Shares were distributed by Genesis Global Trading Inc. (“Genesis”), acting as the initial purchaser and sole Authorized Participant, through sales in private placement transactions exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to Rule 506(c) thereunder. After this offering, Shares will be distributed by Authorized Participants. Genesis will not act as an Authorized Participant in connection with the public offering of the Shares. It is expected that the Shares will be sold to the public at varying prices to be determined by reference to, among other considerations, the price of the bitcoins represented by each Share and the trading price of the Shares on NYSE Arca at the time of each sale. Shares registered hereby are of the same class and will have the same rights as the Shares distributed prior to this offering.

In exchange for issuing and redeeming Baskets of Shares, the Trust will receive from, or deliver to, Authorized Participants or Liquidity Providers (as defined herein) a number of bitcoins equal to the value of Shares in a Basket. As of the date of this prospectus, each Share represents approximately 0.094 of a bitcoin.

The Authorized Participants will not receive a selling commission or discount from the Trust in consideration of the distribution of Shares to the public through sale on NYSE Arca. Purchasers of Shares may be subject to customary brokerage charges. Investors should review the terms of their brokerage accounts for details on applicable charges. The Authorized Participants may receive commissions or fees from investors who purchase Shares offered hereby through their commission and fee-based brokerage accounts.