As of September 2019, GBTC is the largest Bitcoin investment trust with a market capitalization of $2.8 billion.
The trust holds approximately 173,000 Bitcoin, which is equivalent to 1% of the total supply. GBTC is available for trade on the over-the-counter (OTC) market and trades at a premium to the underlying value of Bitcoin.
The trust’s sponsor is Grayscale Investments, LLC, a digital currency asset manager. Grayscale Investments is a wholly-owned subsidiary of Digital Currency Group, Inc.
, which also owns CoinDesk.
GBTC was one of the first Bitcoin investment vehicles to be available to investors and is the only one that is traded on a major stock exchange (OTCQX: GBTC).
NOTE: This article provides information about the number of Bitcoin shares available in the Grayscale Bitcoin Trust (GBTC). However, it is important to remember that the value of a Bitcoin share can change rapidly due to market volatility. Investing in Bitcoin shares carries a high degree of risk and may result in losses. Before investing, please ensure that you fully understand the risks associated with cryptocurrency investments and consult a qualified financial advisor if necessary.
The trust’s creation was announced in 2013 and it began trading on the OTCQX in 2015.
GBTC’s net asset value (NAV) is calculated by dividing the value of the trust’s Bitcoin holdings by the number of outstanding shares. The NAV per share is then multiplied by the number of shares outstanding to arrive at the market capitalization.
As of September 2019, there are approximately 173,000 Bitcoin held in GBTC, which equates to 1% of the total supply. The trust trades at a premium to its NAV, meaning that each share costs more than its underlying value in Bitcoin.
7 Related Question Answers Found
Bitcoin is the world’s first and most well-known cryptocurrency, with millions of people around the world using it to buy and sell goods and services. GBTC is a fund that allows investors to gain exposure to Bitcoin without having to buy or store the underlying asset. GBTC is traded on the stock market, and its price is based on the price of Bitcoin.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoin is a new kind of asset and, as such, it is not surprising that its price would be volatile. However, the degree to which it has been volatile, and the reasons for that volatility, are not well understood. In particular, there is a common misconception that the price of Bitcoin is primarily driven by speculation.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
GBTC is a trust that owns Bitcoin and sells shares of that trust to investors. GBTC is thus a vehicle for holding Bitcoin that is tradeable on traditional markets. You can redeem GBTC for Bitcoin, but there may be a premium attached to the redemption depending on market conditions. .
As of late 2017, GBTC was the largest bitcoin ETF by assets under management and the only one available to trade on a major U.S. stock exchange.4 The fund’s objective is for the NAV to track the market price of bitcoin, less fees and expenses. The fund holds actual bitcoins—not futures contracts or other derivatives—and is fully invested in bitcoin.
When it comes to Bitcoin, there are a lot of different ways to skin the cat. You can buy Bitcoin, you can mine Bitcoin, or you can trade Bitcoin. But what if you want to invest in Bitcoin without actually buying or selling any Bitcoin?
