Grayscale Bitcoin Trust is an investment trust that holds Bitcoin and issues shares of the trust to investors. The trust is managed by Grayscale Investments, LLC, a subsidiary of Digital Currency Group, Inc.
The trust’s objective is to track the performance of the price of Bitcoin, less the expenses of the trust’s operations. The trust’s shares are traded on OTCQX under the symbol: GBTC.
Since its inception in 2013, Grayscale Bitcoin Trust has been a popular investment for those seeking exposure to Bitcoin without having to directly purchase and manage the underlying asset. The trust provides investors with a convenient and secure way to gain exposure to Bitcoin while avoiding many of the risks associated with buying and holding the digital currency directly.
However, there are also some potential downsides to consider before investing in GBTC. First, the premium that investors pay for GBTC shares can be quite high.
Second, GBTC is not an exchange-traded fund (ETF), so it can only be purchased through brokerages that offer OTC trading services. Finally, the trust is not currently available to most retail investors in Europe and Asia.
Despite these potential drawbacks, Grayscale Bitcoin Trust remains one of the most popular ways for investors to gain exposure to Bitcoin. For those looking to add Bitcoin to their portfolio without having to deal with the complexities of buying and storing the digital currency directly, GBTC may be worth considering.