When BTC was $30,000, GBTC was $30. When BTC was $33,000, GBTC was $33. (basically, a 1000 to 1 ratio) Now BTC is $26,800, and GBTC is $14. Is GBTC a scam? TC 350k #personalfinance #investments
Think of it as a risk play for turning into a full blown spot Bitcoin ETF. The market seems to think the odds of GBTC turning into a spot ETF is 14k/27k = almost 50%.
Im sure people who bought gbtc did not do it to bet on the chances of the fund becoming an etf, rather to get exposure to btc price - which they did not - which was never the purpose of gbtc. Investors were misled, at best. Scam all day.
Either BTC should be at $14k, or GBTC should be at $26. You decide
No, it is not. It can trade at a premium or discount to it's NAV for different reasons. Buy gbtc, short Bitcoin (in proportion) should be risk less in theory if it tracks Bitcoin 1:1. If that diverges, there's probably good reasons why that's happening. (If you're savvy and have researched these reasons, could potentially capture that spread..)
There are a few big issues, the main ones being: (1) you cannot redeem gbtc for BTC, (2) gbtc has a 2% annual fee, and (3) gbtc is not a ETF People should buy gbtc if they want to place a bet in favor of grayscale's fight against the sec. The people sitting on their gbtc holdings probably have huge gains they don't want to realize and pay taxes for and thus eating the high fees (and creeping discount to nav)
isn't it the opposite? If you buy BTC and short GBTC thinking those people are going to scam it or suck money out, then if it really happens, then you gain what they gain. If it doesn't happen, you are just break even.
No it is not.. buying GBTC now at this bargain will pay you off decently. Nobody tells this.
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Why do you think it’s a scam? It’s just a trust that holds Bitcoin. You can see how many btc they have.
updated: When BTC was $30,000, GBTC was $30. When BTC was $33,000, GBTC was $33. Now BTC is $26,800, and GBTC is $14.