GBTC Bitcoin Investment Trust Observer

[jl2012]

169XBT bought yesterday

[solex]

Great work jl2012.
Their total has now reached the 85k which Exante was reported to own in April last year.

[TERA]

Is there selling now?

[jl2012]

Is there selling now?

We only know the net increase/decrease, and there could be +/-100 of rounding error

[naaktslak]

its only possible for experienced investors to get in 

[jl2012]

1844XBT bought yesterday

[skivrmt]

its only possible for experienced investors to get in 

Haha, interesting use of the word experienced.  Accredited is a lot different experienced.  Just because makes a lot of money (most likely in a non financial field) or has a net worth worth over $1MM (most likely from a built up from a non financial field) does not mean they know anything about investing!

[GigaCoin]

1844XBT bought yesterday

Is it clarified anywhere which exchange they use to purchase their coins ?

[Biodom]

1844XBT bought yesterday

Is it clarified anywhere which exchange they use to purchase their coins ?

They might not need an exchange and purchase directly from a large miner.
Steve Carlson boasted having 1Pth.
Here is another one-KnC datorhall:
http://organofcorti.blogspot.se/2014/03/march-9th-2014-weekly-hashrate.html

7.75% of the network or ~2.5Pth-should produce 280 coins a day (1864 coins is less than a week's worth of work)

[gotmilk_]

They are also buying bitcoins (min. 25btc at 2-3% lower rate than Bitstamp) for a month now (officaly)... So they probably have their own stash and they sell it later when the investor comes?

[2_Thumbs_Up]

They are also buying bitcoins (min. 25btc at 2-3% lower rate than Bitstamp) for a month now (officaly)... So they probably have their own stash and they sell it later when the investor comes?

Yeah, it would be really nice to get some clarification on what the numbers mean.

Is every "share" always held by a customer or could the BIT own some of the shares for themselves?
Do the trust always buy "on demand" or do they buy in anticipation of future demand?
If they buy coins in advance, will these be represented in the numbers, or will that happen once they sell the coins to customers?

[jl2012]

1696XBT bought yesterday

[FNG]

1844XBT bought yesterday

1696XBT bought yesterday

This is getting interesting.   Thanks for the work, j12012

[JorgeStolfi]

Does anyone know for sure whether their "liquidity" has started?

I suppose that it means that some investors now can "liquidate" their investment, i.e. withdraw dollars based on the current valuation or soething.

If so, presumably that applies only the early investors, for now? I.e. there is a minimum wait period before one can "liquidate" one's investment?

[128bpm]

Does anyone know for sure whether their "liquidity" has started?

I suppose that it means that some investors now can "liquidate" their investment, i.e. withdraw dollars based on the current valuation or soething.

If so, presumably that applies only the early investors, for now? I.e. there is a minimum wait period before one can "liquidate" one's investment?

I'd have to imagine that given the fees involved, most of their clients are going to be long-term holders.

[JorgeStolfi]

I'd have to imagine that given the fees involved, most of their clients are going to be long-term holders.

Their fees are much lower than the expecetd changes in BTC price.

If an investor believes that BTC may lose 10% of its value in the next year  (or whatever time frame he cares for), then he would probably want to liquidate now.  If I read correctly, the value already dropped from ~85$ to ~62$ over the last month.

[solex]

I'd have to imagine that given the fees involved, most of their clients are going to be long-term holders.

Their fees are much lower than the expecetd changes in BTC price.

If an investor believes that BTC may lose 10% of its value in the next year  (or whatever time frame he cares for), then he would probably want to liquidate now.  If I read correctly, the value already dropped from ~85$ to ~62$ over the last month.

So why not wait until it drops to ~$50 and then it really really confirms that the time is to sell?
The fact is that SM investors are professionals who know the principle of buy low & sell high, and they also take a long-term view: 2+ years. The current dip is nothing but noise in the long-term view.

[JorgeStolfi]

If an investor believes that BTC may lose 10% of its value in the next year  (or whatever time frame he cares for), then he would probably want to liquidate now.  If I read correctly, the value already dropped from ~85$ to ~62$ over the last month.

The fact is that SM investors are professionals who know the principle of buy low & sell high,

Professionals know more than that simple rule.  (Note that it fails if the "low" where the item was bought is not followed by a suitable "high" in an acceptable time frame.   If the fund's  value will "never" return to the 80$ level, a trader who follows that rule blindly will lose 100%, while a trader who liquidates now will lose only 25%.)

So why not wait until it drops to ~$50 and then it really really confirms that the time is to sell?
[ ... professionals ]also take a long-term view: 2+ years. The current dip is nothing but noise in the long-term view.

That is why I wrote "in whatever time frame he cares for".  If such a trader believes that the value will go up by 10% or more over 60$ within that 2+ year frame,  he will hold; but if he expects that in 2+ years the value will not increase over 60$ by more than the fees, he will want to liquidate as soon as possible and move to a better investment.

And he will not base such belief merely on the past price history, he will look for fundamentals.  (I mentioned the drop from 80$ to 60$ only to show that a 2% fee is not a significant deterrent to early liquidation in the case of bitcoin investments.  I did not mean that such a drop was a reason to sell.)

[skivrmt]

I'd have to imagine that given the fees involved, most of their clients are going to be long-term holders.

Their fees are much lower than the expecetd changes in BTC price.

If an investor believes that BTC may lose 10% of its value in the next year  (or whatever time frame he cares for), then he would probably want to liquidate now.  If I read correctly, the value already dropped from ~85$ to ~62$ over the last month.

So why not wait until it drops to ~$50 and then it really really confirms that the time is to sell?
The fact is that SM investors are professionals who know the principle of buy low & sell high, and they also take a long-term view: 2+ years. The current dip is nothing but noise in the long-term view.

One of the things also with the price of BIT is that they used to take the price from various sources, but it included Mt Gox pricing.  As soon as they stopped using Gox pricing in their formula the price dropped significantly, artificially, as well as the market drop.

[Chalkbot]

Second Market to open to ordinary investors