What is the Bitcoin Investment Trust (GBTC)?

The fund launched back in 2013 as the Bitcoin Investment Trust (BIT) and has grown rapidly since then. The GBTC now allows investors to gain BTC exposure through a private trust that trades directly on the U.S. stock market (as “GBTC”). As of April 2021, the GBTC holds 654,885 Bitcoin.

Is the GBTC Trust obsolete?

While GBTC eliminates some hassles and risks of investing in Bitcoin directly, those benefits come at a cost. A Bitcoin ETF could render the trust obsolete. The Grayscale Bitcoin Trust (GBTC) is the latest answer to a longstanding question on digital currency: Is it possible to invest in Bitcoin via the stock market?

How does the GBTC work?

The GBTC now allows investors to gain BTC exposure through a private trust that trades directly on the U.S. stock market (as “GBTC”). As of April 2021, the GBTC holds 654,885 Bitcoin. This represents roughly 46% of the 1.4 million Bitcoin that is currently held by publicly traded companies.

Is GBTC a speculative investment?

Investments in GBTC are speculative investments that involve high degrees of risk, including a partial or total loss of invested funds. Grayscale products are not suitable for any investor that cannot afford the loss of the entire investment.