The Grayscale Bitcoin Trust is an investment vehicle for individuals seeking exposure to bitcoin without having to buy, store, or manage the underlying digital currency. The Trust is sponsored by Grayscale Investments, LLC (“Grayscale”), a digital currency asset manager.

The current premium for the trust is 1.03%, meaning that for each share of the trust you own, you are paying $1.

03 more than the underlying value of the bitcoins held by the trust. .

The premium has fluctuated over time, but has generally been on an upward trend since the trust was launched in 2013. In December 2017, when bitcoin reached its all-time high price of nearly $20,000, the premium reached a high of almost 30%.

The premium is determined by supply and demand for the trust shares. When there is more demand for shares than there is available supply, the price goes up and the premium increases.

The opposite is also true – when there is more supply than demand, the price goes down and the premium decreases.

Investors must pay the premium when they buy shares of the trust, and they receive a corresponding discount when they sell shares. For example, if you buy one share of the trust for $1,030 and later sell it for $1,040, you would realize a $10 profit (excluding any fees or expenses).

The current premium provides an opportunity for investors who believe that bitcoin will continue to increase in value over time. If you think bitcoin will go up in value and are willing to pay a higher price for exposure to it today, buying shares of the trust may be a good investment decision.