GBTC

[Tom23824]

Is GBTC, worthy of investment?

How co-related is it to BTC?

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[Darker45]

Is GBTC, worthy of investment?

I would rather not give a verdict as to whether it is a worthy investment or not. I guess it is relative. Personally, though, I am simply into owning real Bitcoins. And I mean owning in its strictest sense, as in I keep them in a storage which is controlled by no one else but me.

Depending on your circumstances, however, you might find Grayscale's Bitcoin Trust a better option. Although you need to take note that there is a minimum investment. Last I read, it is around $50,000. Not to mention that there is also a certain percentage which is annually deducted from your investment.

How co-related is it to BTC?

GBTC is generally reflective of BTC's value and performance, although it does not always mirror BTC in real time.

[mk4]

If you want self sovereignty, meaning you having total control over your money, then buying bitcoin(BTC) the asset is the way to go. That, and if you want to use it for transactions.

On the other hand, if you only want to take advantage of the supply predictability and future price rise of bitcoin, while you not wanting to bother with(or probably not intellectually capable with) learning how to secure your funds on a non-custodial wallet, then go with GBTC.

[Lorence.xD]

Depending on your circumstances, however, you might find Grayscale's Bitcoin Trust a better option. Although you need to take note that there is a minimum investment. Last I read, it is around $50,000. Not to mention that there is also a certain percentage which is annually deducted from your investment.

Do they really do that? I am genuinely curious as to how and why they deduct a percentage in your investment, I assume that it is a sort of investment manager fees but I could be wrong though. 50k USD is a lot of money, I assume that what they are reeling in are serious long term investors or retirees that do not have a use for some of their retirement for awhile so they invest it to make more money. This business model of Grayscale is a pretty interesting one, I would say that it is a worth it investment as long as you have the disposable money to get in.

[Darker45]

Depending on your circumstances, however, you might find Grayscale's Bitcoin Trust a better option. Although you need to take note that there is a minimum investment. Last I read, it is around $50,000. Not to mention that there is also a certain percentage which is annually deducted from your investment.

Do they really do that? I am genuinely curious as to how and why they deduct a percentage in your investment, I assume that it is a sort of investment manager fees but I could be wrong though. 50k USD is a lot of money, I assume that what they are reeling in are serious long term investors or retirees that do not have a use for some of their retirement for awhile so they invest it to make more money. This business model of Grayscale is a pretty interesting one, I would say that it is a worth it investment as long as you have the disposable money to get in.

First and foremost, I don't have funds managed by Grayscale. Neither am I an accredited individual investor. So don't take me as an authority of how Grayscale cryptocurrency trusts work.

Anyway, Grayscale deducts a certain percentage for "annual administration and safekeeping fee." The lowest deduction is 2% and that's for GBTC only. For other products such as ETH Trust, LTC Trust, and others, the fee would be 2.5%. Others would even reach 3%.^[1]

They are not necessarily after retirees and long term investors. What is clear to me is that they are after either institutional investors or rich individual investors.

[1] https://grayscale.co/faq/

[death69]

I appreciate what Grayscale Trust are doing to promote the cryptocurrency world. They have put millions of money in bitcoin investment and now they have made quite an astonishing decision: Creating shares. If you are in research of this company, it is very good for you to hold some of their shares cause their investment purely on bitcoin. However, personally, I believe that buying bitcoin individually gives you more profit than holding GBTC

But it is up to you. Both of them are lucrative enough to attract funds

[TimtheYoutuber]

If you're interested in Grayscale(GBTC) you can check out my post: https://forrestvisions.com/blog/difference-between-gbtc-and-btc/


I explain everything you need to know about what it is and how it works in relation to BTC.

[odolvlobo]

Is GBTC, worthy of investment?

How co-related is it to BTC?

GBTC, the Grayscale Bitcoin Trust, is simply a company that owns bitcoins. If you own shares of GBTC, you own a portion of the trust and therefore you own that portion of the trust's bitcoins.

The advantage of owning GBTC rather than owning bitcoins directly is that you can hold the shares in a brokerage account and trade them in the stock market. In the U.S., the ability to hold bitcoins in a retirement account is very restricted, but the ability to hold GBTC shares is not.

The disadvantage is that you are relying on GBTC to hold the bitcoins for you, potentially increasing the risk of loss or theft. Additionally, when you buy shares on the open market you are paying a premium for the bitcoins that they represent. Furthermore, Grayscale Investments (different from GBTC) is paid a fee of 2% per year from the trust to manage the trust.

If the advantages don't apply to you, then there is no reason to own shares of GBTC instead of bitcoins.