Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!

[Daltonik]

Grayscale presented the toolkit for investors and financial advisors in the form of a 32-page training manual consisting of 24 sections, which explains everything from the monetary conjuncture and the basics of the bitcoin ecosystem to an explanation of the principle of investing in bitcoin.this is a kind of short guide for investors https://grayscale.com/wp-content/uploads/sites/3/2021/07/grayscale-digital-currency-toolkit.pdf

[1714099284]

1714099284

[fillippone]

<…>

Really interesting read. Thank you for submitting it.
I blame my holidays for not being right on the ball.
I blame lack of merits for not meriting you!

[JayJuanGee]

Take an interest in GrayScale not for the sake of merit, but for the sake of knowledge in the world of cryptocurrencies. Otherwise, your crypto history will contain nothing but the pursuit of the merit.

Fuck merits!!!!!!!


Who needs them?



 

<…>

Really interesting read. Thank you for submitting it.
I blame my holidays for not being right on the ball.
I blame lack of merits for not meriting you!

Don't be this guy!!!!!!!


The drunk sailor meriter, and now with no smerits ... hahhahahahahha

I know you have a BIG load coming in, but you know what?  "Fuck merits.  Who needs them?"

[NathanielParker]

When Amazon’s rumors spread, the price of Bitcoin rose by 14%, and through a short squeeze, short positions of more than $600 million were liquidated within an hour.
Therefore, the premium of Grayscale Bitcoin Trust (GBTC) rebounded sharply. The GBTC premium was close to the zero axis, setting a 2-month high of -3.407.

https://coingape.com/gbtc-premium-rebounds-sharply-with-btc-price-rise-whale-buying-continues/?utm_source=cryptorank&utm_medium=rss

[fillippone]

<..> and funds are returning to GBTC.
<…>

How are you stating this? From my spreadsheet all I can see on the primary market is a constant funds outflow (due to management fees) , without any inflow since the beginning of March.
Also, in secondary market, premium is still negative. Something that arbitrage activity should help rising toward zero.

[Kiley33]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

[DaRude]

<..> and funds are returning to GBTC.
<…>

How are you stating this? From my spreadsheet all I can see on the primary market is a constant funds outflow (due to management fees) , without any inflow since the beginning of March.
Also, in secondary market, premium is still negative. Something that arbitrage activity should help rising toward zero.

GBTC fund is closed so nothing is going into it. Bottom line shows GBTC premium over secondary. As we can see it's negative (discount) at last data point climbing to around -7%. Top two lines are market price and holdings in $ which is essentially same thing since fund is still closed.





This graph is for BTCC Canadian "Purpose Bitcoin ETF" showing price and AUM in CAD$ so once again they're both climbing because BTC is climbing. Nothing new to see here

[JayJuanGee]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

I don't disbelieve anything that you are saying here, Kiley33, but really think about the matter, you should be providing a link or describe your source for your above quote.  I presume that it is some "official" Grayscale announcement no?

In other words, link or it did not happen.

[Kiley33]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

I don't disbelieve anything that you are saying here, Kiley33, but really think about the matter, you should be providing a link or describe your source for your above quote.  I presume that it is some "official" Grayscale announcement no?

In other words, link or it did not happen.

Take Bitcoin as an example: investors can only exchange BTC for GBTC, not GBTC for BTC. If investors want to sell GBTC, they can only go through the secondary market, so his mechanism will make his position bigger and bigger.
Moreover, the Grayscale management fee is deducted from the encrypted currency held by Grayscale, because Grayscale Bitcoin Trust does not clearly indicate the trust period, which means that the coins held by the trust will slowly be transferred to Grayscale hands.
I only learned it recently. If my point of view is wrong, I still need my help to point it out, thank you.

[JayJuanGee]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

I don't disbelieve anything that you are saying here, Kiley33, but really think about the matter, you should be providing a link or describe your source for your above quote.  I presume that it is some "official" Grayscale announcement no?

In other words, link or it did not happen.

Take Bitcoin as an example: investors can only exchange BTC for GBTC, not GBTC for BTC. If investors want to sell GBTC, they can only go through the secondary market, so his mechanism will make his position bigger and bigger.
Moreover, the Grayscale management fee is deducted from the encrypted currency held by Grayscale, because Grayscale Bitcoin Trust does not clearly indicate the trust period, which means that the coins held by the trust will slowly be transferred to Grayscale hands.
I only learned it recently. If my point of view is wrong, I still need my help to point it out, thank you.

I am not questioning your opinion... I am asking you to provide a link to the quote that you provided in your earlier post..

If you quote something in your post, then you should provide a source in order that forum members know from where you got your quote.  Do you have a link for that quote?

[Kiley33]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

I don't disbelieve anything that you are saying here, Kiley33, but really think about the matter, you should be providing a link or describe your source for your above quote.  I presume that it is some "official" Grayscale announcement no?

In other words, link or it did not happen.

Take Bitcoin as an example: investors can only exchange BTC for GBTC, not GBTC for BTC. If investors want to sell GBTC, they can only go through the secondary market, so his mechanism will make his position bigger and bigger.
Moreover, the Grayscale management fee is deducted from the encrypted currency held by Grayscale, because Grayscale Bitcoin Trust does not clearly indicate the trust period, which means that the coins held by the trust will slowly be transferred to Grayscale hands.
I only learned it recently. If my point of view is wrong, I still need my help to point it out, thank you.

I am not questioning your opinion... I am asking you to provide a link to the quote that you provided in your earlier post..

If you quote something in your post, then you should provide a source in order that forum members know from where you got your quote.  Do you have a link for that quote?

Can take a look at thishttps://studio.glassnode.com/metrics?a=BTC&category=Institutions&m=institutions.PurposeEtfHoldingsSum

[JayJuanGee]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

I don't disbelieve anything that you are saying here, Kiley33, but really think about the matter, you should be providing a link or describe your source for your above quote.  I presume that it is some "official" Grayscale announcement no?

In other words, link or it did not happen.

Take Bitcoin as an example: investors can only exchange BTC for GBTC, not GBTC for BTC. If investors want to sell GBTC, they can only go through the secondary market, so his mechanism will make his position bigger and bigger.
Moreover, the Grayscale management fee is deducted from the encrypted currency held by Grayscale, because Grayscale Bitcoin Trust does not clearly indicate the trust period, which means that the coins held by the trust will slowly be transferred to Grayscale hands.
I only learned it recently. If my point of view is wrong, I still need my help to point it out, thank you.

I am not questioning your opinion... I am asking you to provide a link to the quote that you provided in your earlier post..

If you quote something in your post, then you should provide a source in order that forum members know from where you got your quote.  Do you have a link for that quote?

Can take a look at thishttps://studio.glassnode.com/metrics?a=BTC&category=Institutions&m=institutions.PurposeEtfHoldingsSum

That is not what I am asking.

I am asking from where you got this quote: 

>>>>>>>>>>

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

<<<<<<<<<<

Do you have a link for the quote source?

[Kiley33]

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

Repurchase is not supported. Once purchased, it cannot be exchanged for digital currency.
Because this investor wants to cash out, he can only sell his trust shares through the secondary market.
In this way, Grayscale may become one of the largest Bitcoin holders in the market.

I don't disbelieve anything that you are saying here, Kiley33, but really think about the matter, you should be providing a link or describe your source for your above quote.  I presume that it is some "official" Grayscale announcement no?

In other words, link or it did not happen.

Take Bitcoin as an example: investors can only exchange BTC for GBTC, not GBTC for BTC. If investors want to sell GBTC, they can only go through the secondary market, so his mechanism will make his position bigger and bigger.
Moreover, the Grayscale management fee is deducted from the encrypted currency held by Grayscale, because Grayscale Bitcoin Trust does not clearly indicate the trust period, which means that the coins held by the trust will slowly be transferred to Grayscale hands.
I only learned it recently. If my point of view is wrong, I still need my help to point it out, thank you.

I am not questioning your opinion... I am asking you to provide a link to the quote that you provided in your earlier post..

If you quote something in your post, then you should provide a source in order that forum members know from where you got your quote.  Do you have a link for that quote?

Can take a look at thishttps://studio.glassnode.com/metrics?a=BTC&category=Institutions&m=institutions.PurposeEtfHoldingsSum

That is not what I am asking.

I am asking from where you got this quote:  

>>>>>>>>>>

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

<<<<<<<<<<

Do you have a link for the quote source?

Oh，，， sorry, I misunderstood what you meant,
OP posted it. What I later merged were charts and comments. You can view the first page of OP's post.

So, while each share has a "bitcoin per share" equivalent, the NAV is the US Dollar equivalent of this measure.

As per SEC regulations, The Shares are not freely Transferable. We read on the termsheet, and on the fine print we discover that:

Quote
Eligible for resale in accordance with Rule 144 under the Securities Act after a one-year holding period. Pursuant to Rule 144, once the Product has been subject to the reporting requirements of Section 13 under the Exchange Act for a period of 90 days, the minimum holding period will be shortened from one year to six months. We cannot assure you that a secondary market will develop.

So the subscriber of such shares exposes herself to a 6 months holding window.
At the end of this window she will be free to sell the shares in the open market. Provided that there is one, as Grayscale is not involved in such.

Also, Grayscale is not accepting those shares back, as buyback agreement are not guaranteed:

Quote
Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.


So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

This is released by OP.

[DaRude]

...

That is not what I am asking.

I am asking from where you got this quote: 

>>>>>>>>>>

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

<<<<<<<<<<

Do you have a link for the quote source?

There's nothing outlandish in that quote. It's almost entirely taken from their main site

Grayscale® Bitcoin Trust is currently unavailable Grayscale® Bitcoin Trust private placement is offered on a periodic basis throughout the year and is currently closed.
...
Because each Product does not currently operate a redemption program, there can be no assurance that the value of such Product’s shares will reflect the value of the assets held by such Product, less such Product’s expenses and other liabilities, and the shares of such Product, if traded on any secondary market, may trade at a substantial premium over, or a substantial discount to, the value of the assets held by such Product, less such Product’s expenses and other liabilities, and such Product may be unable to meet its investment objective.

https://grayscale.com/products/grayscale-bitcoin-trust/

[JayJuanGee]

...

That is not what I am asking.

I am asking from where you got this quote: 

>>>>>>>>>>

Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So, when you invest in Grayscale shares, you are actually locked into that, and the only way to get rid of those is on the secondary market, after a minimum of six months.

<<<<<<<<<<

Do you have a link for the quote source?

There's nothing outlandish in that quote. It's almost entirely taken from their main site

Grayscale® Bitcoin Trust is currently unavailable Grayscale® Bitcoin Trust private placement is offered on a periodic basis throughout the year and is currently closed.
...
Because each Product does not currently operate a redemption program, there can be no assurance that the value of such Product’s shares will reflect the value of the assets held by such Product, less such Product’s expenses and other liabilities, and the shares of such Product, if traded on any secondary market, may trade at a substantial premium over, or a substantial discount to, the value of the assets held by such Product, less such Product’s expenses and other liabilities, and such Product may be unable to meet its investment objective.

https://grayscale.com/products/grayscale-bitcoin-trust/

I was ONLY asking for the source of the quote.  I was not even questioning the content or the assertions contained therein...

Any member/poster should be providing links or at least saying from where s/he got his quotes... it is just way less confusing rather than any of us having to attempt to search or figure out (the potential puzzle) from where is the quote coming... this ended up being pretty straight forward, from OP, but I had to ask like three times...and no one should even need to ask about these kinds of posting 101 basics, no?

[ROSERTY]

After the unlocking of the last batch of GBTC, the continued discount of Bitcoin Trust is undergoing a sharp reversal. This significant reversal may be a signal that investors are confident in the recent recovery of BTC.
https://bitcoinexchangeguide.com/gbtc-discount-sees-a-sharp-reversal-as-the-final-unlock-clears/

[NathanielParker]

The recent increase in the price of cryptocurrency has brought various institutional products such as gray funds into the focus of attention.

https://cointelegraph.com/news/25b-investment-firm-adds-riskier-grayscale-gbtc-and-ethe-for-clients?utm_source=cryptorank&utm_medium=rss

Wealthfront allows its clients to access Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). Wealthfront's investment portfolio includes two cryptocurrency trusts: Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).

https://blog.wealthfront.com/cryptocurrency-exposure-at-wealthfront/

[Daltonik]

The company Wealthfront with assets of $25 billion announced the expansion of the range of services offered, opening customers access to cryptocurrency funds from Grayscale Investments, which includes two cryptocurrency trusts Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).  https://blog.wealthfront.com/cryptocurrency-exposure-at-wealthfront/

[oHnK]

After the unlocking of the last batch of GBTC, the continued discount of Bitcoin Trust is undergoing a sharp reversal. This significant reversal may be a signal that investors are confident in the recent recovery of BTC.
https://bitcoinexchangeguide.com/gbtc-discount-sees-a-sharp-reversal-as-the-final-unlock-clears/

I don't think the decline in GBTC will have a significant effect on the market because even if it is sold by investors, what they sell is the grayscale stock itself and even if there is volatility in the crypto market it is only the speculators themselves in creating issues over the unlocking of GBTC. We all know that Grayscale has its own competitor such as ETF BTC and we know GBTC is more expensive than BTC.

[Daltonik]

Grayscale today announced the formal appointment of former Alerian CEO David Lavalle, Senior Managing Director, Global head of ETFs reporting directly to Michael Sonnenschein, CEO of Grayscale, to lead its efforts to transform a bitcoin trust into an exchange-traded fund (ETF). https://www.globenewswire.com/news-release/2021/08/04/2274526/0/en/Grayscale-Investments-Furthers-Commitment-to-Bitcoin-ETF-Hiring-Global-Head-of-ETFs.html