GBTC Bitcoin Investment Trust Observer

[jl2012]

since the site show 2 decimal places for net asset, please consider adding that.  Thanks.

updated

[oda.krell]

10-Jun-14

64.34

69.16

106325

10

0.01

They're buying 10 coins?

My grandmother's buying 10 coins.

Sheesh. Whales these days...



Okay, seriously though:

Thanks a lot for keeping this updated, jl2012. Much appreciated.

[jl2012]

10-Jun-14

64.34

69.16

106325

10

0.01

They're buying 10 coins?

My grandmother's buying 10 coins.

Sheesh. Whales these days...



Okay, seriously though:

Thanks a lot for keeping this updated, jl2012. Much appreciated.

That's actually below their minimum investment ($25000), so most likely rounding error

[wachtwoord]

My grandmother's buying 10 coins.

Coolest. Grandmother. Ever.

[thezerg]

I wonder if the pause in purchasing is because of the govt sale... IIRC they had previously expressed interest in buying these coins so its quite possible that they got advance notice that a sale was imminent.

[N12]

I wonder if the pause in purchasing is because of the govt sale... IIRC they had previously expressed interest in buying these coins so its quite possible that they got advance notice that a sale was imminent.

Best explanation I heard so far, but a month earlier? Who knows. Then again, they aren't guaranteed to get their fill at the auction, and I'm not sure they would wait this long to fill orders.

[segeln]

I wonder if the pause in purchasing is because of the govt sale... IIRC they had previously expressed interest in buying these coins so its quite possible that they got advance notice that a sale was imminent.

Best explanation I heard so far, but a month earlier? Who knows. Then again, they aren't guaranteed to get their fill at the auction, and I'm not sure they would wait this long to fill orders.

I agree.
the only way they can do it is by preorders (and precash)

[jl2012]

I wonder if the pause in purchasing is because of the govt sale... IIRC they had previously expressed interest in buying these coins so its quite possible that they got advance notice that a sale was imminent.

Best explanation I heard so far, but a month earlier? Who knows. Then again, they aren't guaranteed to get their fill at the auction, and I'm not sure they would wait this long to fill orders.

They buy bitcoin if and only if their clients ask so, so I don't think it is related.

Having said that, I don't expect their client will buy in any big amount before the auction is concluded.

[thezerg]

I wonder if the pause in purchasing is because of the govt sale... IIRC they had previously expressed interest in buying these coins so its quite possible that they got advance notice that a sale was imminent.

Best explanation I heard so far, but a month earlier? Who knows. Then again, they aren't guaranteed to get their fill at the auction, and I'm not sure they would wait this long to fill orders.

They buy bitcoin if and only if their clients ask so, so I don't think it is related.

Having said that, I don't expect their client will buy in any big amount before the auction is concluded.

This is a traditional HNWI broker operation.   You can be sure they're on the phone trying to put together commitments to make a serious bid.

[N12]

Still nothing? It's amazing that noone is buying Bitcoins. All have lost interest?

[jl2012]

Still nothing? It's amazing that noone is buying Bitcoins. All have lost interest?

Just updated. Still accumulating, albeit slowly

[equipoise]

^They are waiting to buy the FBI seized coins (silk road and some other and 3000 BTC donations to their addresses). You can't expect any uptrend before that, because lower the market price - lower they buy it, less $ for FBI.

[JorgeStolfi]

^They are waiting to buy the FBI seized coins (silk road and some other and 3000 BTC donations to their addresses). You can't expect any uptrend before that, because lower the market price - lower they buy it, less $ for FBI.

They should not have to depend on that.  They should make profit even buying coins at the market price, and they must have sources (miners etc.) who can provide a couple thousand coins per week, at or below market price. 

Most likely they not finding clients willing to lock their money for six months into a fund whose shares have lost 10% of their nominal value in the last two weeks.

[JorgeStolfi]

Barry Silbert just tweeted a summary of the syndicate that SecondMarket organized to bid on the USMS auction:
https://twitter.com/barrysilbert/status/482951689381904384

42 bidders
186 bids received
BTC quantity bid 48,013

I gather that they collected bids from those 42 people (average bid: ~264 BTC), then selected the highest ones adding up to the auction offer (~29'600 BTC) and submitted bids for the 10 lots, at suitable mean prices.

I presume that they asked the bidders to provide the full dollar amount of their bids in advance, otherwise one defaulter could cause other bidders in the same lot to lose their share of the deposit.

It seems likely that most if not all of those bids were well below market.  I cannot imagine why someone would enter that syndicate to buy a couple hundred BTC above market, instead of buying at an exchange (or buying shares of SMBIT).

Finally, I imagine that SecondMarket and SMBIT did not submit any bid of their own, either as part of the syndicate or separately.  Otherwise there would be an, erm, rather delicate situation there.

[N12]

I cannot imagine why people who would bid above market wouldn't just buy from, you know, SecondMarket in the first place.

Remember that SecondMarket charges you 5% fees for a winning bid on this auction, and this is in addition to SecondMarket syndicate bidders not buying one full block individually, and thus other options to acquire that amount are much more competitive with low slippage.

That said, this auction is unimportant anyway as it's maybe a week's worth of mining supply.

[jl2012]

As many BIT customers failed to bid, we have see some action this week

[BitAddict]

As many BIT customers failed to bid, we have see some action this week

Agree. Hope to see SM bitcoins number increasing. 

[jl2012]

406XBT bought. This is the biggest buy in the past 2 months

[derpinheimer]

406XBT bought. This is the biggest buy in the past 2 months

 

Lets hope this trend continues.

[FNG]

406XBT bought. This is the biggest buy in the past 2 months

Woot.

"So basically at least USD$20MM of bitcoin buying demand went unsatisfied in the auction and will look elsewhere to buy bitcoins i.e. market" Alan Silbert