GBTC Bitcoin Investment Trust Observer

[mmortal03]

It should be interesting to see if other wealth management companies follow suit. Two articles on the topic:

"Bank of America Merrill Lynch banned clients from investing in one of bitcoin mogul Barry Silbert's top funds last month, according to a memo seen by Reuters."

"Merrill Lynch brokerage clients with historic positions in the Bitcoin Investment Trust fund can maintain them, but clients with fee-based advisory accounts have to sell their holdings, according to the memo."

http://www.businessinsider.com/r-merrill-lynch-bans-clients-from-investing-in-silbert-bitcoin-fund-2018-1


https://www.bloomberg.com/news/articles/2018-01-03/bofa-said-to-include-bitcoin-trust-in-broader-ban-on-investments

[CrazyLoaf]

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[MrSunshine]

Bitcoin Investment Trust Announces Stock Split:

https://www.prnewswire.com/news-releases/bitcoin-investment-trust-announces-stock-split-300581752.html


NEW YORK, Jan. 11, 2018 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (OTCQX: GBTC) (the "Trust"), announced that it has today declared a 91-for-1 stock split of the Trust's issued and outstanding shares. With the split, shareholders of record on January 22, 2018 will receive 90 additional shares of the Trust for each share held.

The stock split will be effected on January 26, 2018 to shareholders of record as of the close of business on January 22, 2018. Following the stock split, the Trust's shares will continue to be quoted on the OTCQX under the symbol "GBTC." ...

[mmortal03]

Some positive coverage: https://seekingalpha.com/article/4137147-grayscales-bitcoin-investment-trust-gift-keeps-giving-just-getting-started

[mmortal03]

"Michael Sonnenshein, Grayscale, discusses the Bitcoin Investment trust stock split and what that could mean for bitcoin and other cryptocurrencies. CNBC's Seema Mody weighs in."
https://www.cnbc.com/video/2018/01/12/grayscales-michael-sonnenshein-bitcoin-doesnt-come-without-risks.html

He said at the end that they're working on a product that is a basket of digital currencies.

[CrazyLoaf]

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[mmortal03]

Bitcoin Investment Trust Announces Stock Split:

https://www.prnewswire.com/news-releases/bitcoin-investment-trust-announces-stock-split-300581752.html


NEW YORK, Jan. 11, 2018 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (OTCQX: GBTC) (the "Trust"), announced that it has today declared a 91-for-1 stock split of the Trust's issued and outstanding shares. With the split, shareholders of record on January 22, 2018 will receive 90 additional shares of the Trust for each share held.

The stock split will be effected on January 26, 2018 to shareholders of record as of the close of business on January 22, 2018. Following the stock split, the Trust's shares will continue to be quoted on the OTCQX under the symbol "GBTC." ...

I don't get the separate record and split dates. So for those holding today (Jan. 22) they can sell before Jan. 26 and then get a free 90 shares?

With the split, shareholders of record on January 22, 2018 will receive 90 additional shares of the Trust for each share held.

Am I reading this right?

That doesn't make sense to me, either.

[Syke]

I don't get the separate record and split dates. So for those holding today (Jan. 22) they can sell before Jan. 26 and then get a free 90 shares?

Sure you can sell them, but people will only pay 1/91st for them if you sell them post-split. You won't get to sell post-split shares at full-price and then get free 90 shares.

Think of it more as just a delivery delay of the free 90 shares for whatever reason.

[plusalpha789]

"Michael Sonnenshein, Grayscale, discusses the Bitcoin Investment trust stock split and what that could mean for bitcoin and other cryptocurrencies. CNBC's Seema Mody weighs in."
https://www.c[Suspicious link removed]m/video/2018/01/12/grayscales-michael-sonnenshein-bitcoin-doesnt-come-without-risks.html

He said at the end that they're working on a product that is a basket of digital currencies.

In that video he also mentions that Grayscale will soon offer a publicly traded Ethereum ETN.  I think that's a pretty good reason to avoid GBTC (as if the 77% premium to underlying bitcoin value were not enough of a reason).

[plusalpha789]

These brokers are getting goofy with what they allow and don't allow. For example, Interactive Brokers for the longest time did not allow GBTC trading, but did allow COINXBT (XBTProvider ETN) trading. Now they don't allow COINXBT to trade, but do allow GBTC and bitcoin futures trading. Hilarious!

And people wonder why GBTC trades at a premium! A ton of money has lost access to COINXBT which traded close to the BTC spot. These brokers are exacerbating the problem.

Anyone know of a U.S. broker that does allow trading of COINXBT? 

Thanks in advance for any help.

[CrazyLoaf]

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[CrazyLoaf]

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[plusalpha789]

Even when COINXBT was available, the premium still persisted on GBTC. Any suggestions for an alternative from anyone?

Futures on CBOE or CME, but I assume you are already aware of those.

[Syke]

I guess we need to see what people will trade GBTC for tomorrow since the record date has already happened, but say I sell a share tomorrow (when it is still roughly 0.1 BTC) - won't I still get the free 90 shares even I go ahead and sell my one share?

Yes, that's how I read it. The shares are now split. You now own 91 shares, even though you only see 1 share in your account.

[CrazyLoaf]

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[Syke]

Can someone confirm this? Is trading locked or anything like that? This seems like a massive oversight if I could just dump my one share now (at roughly the same price as yesterday) and still be able to get the 90 free shares.

We're in some weird territory. The split should be locked-in, but the price hasn't dropped. This is an interesting detail in the press release:

Shareholders contemplating a transaction in the Trust's shares between the record date and payment date should consult a broker regarding their entitlement to the split shares.

It seems to imply that the bonus shares may transfer with the sale of a share. Very strange.

[mmortal03]

Yeah, it wouldn't make any sense, because anyone who bought today wouldn't be buying at the right price.

[nailo]

Anyone know when the Bitcoin Gold distribution will happen for those entitled to it?

[mmortal03]

Anyone know when the Bitcoin Gold distribution will happen for those entitled to it?

That was last month: https://www.prnewswire.com/news-releases/bitcoin-investment-trust-announces-record-date-for-distribution-of-bitcoin-gold-300561237.html

[CrazyLoaf]

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