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Bitcoin Investment Trust (GBTC)

12,488 Views | 123 Replies | Last: 6 yr ago by Vivificus
Vivificus
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AG
I recently took a small position in the otc bitcoin investment trust. Here are a few things I see:

You can "Own" Bitcoin without having to mess with keys and other security issues associated with ownership.

Ownership through tax advantaged account

Allows investment of retirement money, opening up to many more investors

Future forks may increase value or pay dividends by selling off coins generated.

Thoughts?
Viv
aggie_fan13
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AG
It's a bubble
some men you just cant reach ...
wheelskjm
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4 threads.

God I hope that(those) POS's that banned and deleted my threads is eating some huge f'n crow, as are the dbags that would flag them.

The schadenfreude is real. Apologies.

Viv,
I like the GBTC, but haven't put money towards it because I frankly for whatever reason don't trust traditional investment anymore. With that bias being identified, I think you should own some, at least a little for my sanity. Like $50 worth, just so you can start understanding the concept directly instead of indirectly.
Vivificus
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Obviously I think it's worth a risk with a small position. Would you still call it a traditional investment? It's pretty out there as far as investments go IMO. Shares are in the $900 range for GBTC at this time.

It is currently more expensive than bitcoin since each share of the trust holds approximately 0.092 coins (BTC and BCH) . With bitcoin at $7000, bitcoin cash at about $600, that puts GBTC at about a 30% premium over owning coins directly.

With a fork coming up in the next two weeks it could see another coin generated that will add to the value.
Viv
wheelskjm
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Fork was disbanded, segwit2x update was cancelled yesterday.
DallasAggie0
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Is this the new Btc fund? So what are the advantages of owning some over btc in finance terms?
Vivificus
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Vivificus said:


You can "Own" Bitcoin without having to mess with keys and other security issues associated with ownership.

Ownership through tax advantaged account

Allows investment of retirement money, opening up to many more investors

Future forks may increase value or pay dividends by selling off coins generated.



Those are the advantages I had come up with so far.

I wasn't aware of any other crypto currency funds, etfs etc. which ones have you heard about?
Viv
Ranger222
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I looked into GBTC a little while back and decided it was just too volatile for me for something I really didn't understand. For example, it had a high of $980 last Friday, and hit $880 on Tuesday. Maybe that's just the nature of the crypto and something you'll have to live with. The premium of ~30% is better than it was in the past -- I think it was closer to 80% at one point.

Of course when I looked at it early in the summer the value was ~350 and it has already advanced to 900 so what do I know
Vivificus
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Just to resurrect an old topic closed today at $1521, peaked as high as 1800. I am at about a 69% growth in the past few weeks.
Viv
bmks270
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This is just the beginning of the biggest bubble in financial history. Once wallstreet makes these crypto currency investment instruments and derivatives it'll be a party like its 1999....
MrJonMan
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Impressive

Who are you investing through?
Vivificus
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I think I will take some profits in the next few days. I'm not worried about a burst at this point.
Viv
Vivificus
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I have my IRAs through Vanguard. I had to call and make the purchase over the phone I can only assume because it's on an OTC market.
Viv
Vivificus
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Update, sold half nun shares at just over 100% growth, going to let the remainder ride a bit more and see what happens.
Viv
HoustonAg2014
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Do they have this in the retirement funds? If so, can you let me know the name of the fund? I would like to throw some money at it. People keep saying it is a bubble and over valued, but I said that when it was at 1,200 earlier this year. I'm so pissed I didn't buy 1 and just see what happened...
BlackGoldAg2011
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Aggiesincebirth said:

Do they have this in the retirement funds? If so, can you let me know the name of the fund? I would like to throw some money at it. People keep saying it is a bubble and over valued, but I said that when it was at 1,200 earlier this year. I'm so pissed I didn't buy 1 and just see what happened...
I agree, just finally decided to throw a few thousand in and see what happens. a bit late, but hopefully not at the top yet before it pops. this is 100% gambling money to me at this point
Vivificus
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Bitcoin Investment Trust (GBTC)

Greyscale is the firm that manages it, I have only used IRA funds for this investment, 5-10% of my overall account. I don't think I want to go higher than that.
Viv
Gigemags382
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Vivificus said:

Bitcoin Investment Trust (GBTC)

Greyscale is the firm that manages it, I have only used IRA funds for this investment, 5-10% of my overall account. I don't think I want to go higher than that.

5-10% of your IRA account in bitcoin? Some of y'all have much larger balls than me, I'll admit it. It's been a fun ride to watch, and certainly seems like it still could have a long way to go. But dang.
Vivificus
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Well when your 10% is as small as mine it wouldn't be a big loss.

Everyone has different risk tolerance.

Currently GBTC is the closest way you can put retirement funds into bitcoin. (As far as I know) so I see more people going this route for investment.
Viv
Texaggie7nine
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I was thinking of buying into this. The spike from last night though has me questioning. The other option was bitcoinIRA which will put IRA funds into actual cryptocurrency but it's a minimum 15k investment.
7nine
Vivificus
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Each share of GBTC holds approximately.095 bitcoin, bitcoin gold etc. I think the fund has 170k coins in total. They are planning on a distribution of funds from selling bitcoin gold in the near future. It's not a s sure thing, but has provided me with some good returns. I think it will keep some momentum due to it being one of the few ways to gain exposure to crypto in retirement funds.
Viv
Texaggie7nine
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I saw an article saying they were expecting GBTC to crash when BTC futures became available on the market.
7nine
85Photon
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There are other bitcoin and blockchain plays out there.
OSTK - Overstock.com is accepting bitcoin now, it has some security being a business, not a pure play.
GLNNF - Glance Tech, also GET on the Toronto exchange - uses blockchain for secure payments to restaurants, and has rewards points that will soon be a crypto currency of their own - a blockchain play
GAHC - setting up BTC to USD conversions

For more blockchain stocks consider:
PRELF, RIOT, MGMT
At a more diluted level: NSDQ, IBM, MSFT, JPM are getting into/using blockchain more and more.
edit: Also BR (Broadridge)

I do not recommend taking a large stake in the speculative ones - there is a correction coming someday.

I have some holdings in all of the above, but combined they are less than 2% of my portfolio.
edit2 : clearer sentence structure
Vivificus
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DPW Digital Power Corporation is another to consider, been up recently
Viv
Vivificus
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Texaggie7nine said:

I saw an article saying they were expecting GBTC to crash when BTC futures became available on the market.


One of the reasons I sold my profits off. No one is sure how futures will effect things
Viv
Texaggie7nine
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So Bitcoin is sitting still and GBTC is still booming.

I don't get it but I'm happy I held onto it.
7nine
Vivificus
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I think it's catching up to where it should be in relation to bitcoin price. It should be roughly 10% of the cost of a single bitcoin. As we have discussed earlier the premium is in the fact that you don't have to deal with security of owning crypto and abilities to invest retirement funds.

It seems the premium is going to very low levels, I'm wondering if it will recover or stay low.
Viv
Texaggie7nine
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Well 10% of a bitcoin right now is 1700. GBTC is at 2100
7nine
Vivificus
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It's moving pretty quick, at open this morning with GBTC at 1900, it was a pretty low premium about 10%. Now at about 20% it's still lower than it has been in the near past. I think there is still room to go up.
Viv
Texaggie7nine
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It's nerve racking with bitcoin hardly moving.
7nine
Vivificus
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Texaggie7nine said:

It's nerve racking with bitcoin hardly moving.


Funny how +3% is hardly moving now. But in the current climate it's true. We have enjoyed quite a rally lately, I think it might slow , but I don't see a crash to zero coming.
Viv
Texaggie7nine
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It won't stop
7nine
Texaggie7nine
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Abandon ship!
7nine
Vivificus
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Is it back alive?
Viv
Texaggie7nine
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It sure looks like it wants to be, but I don't see how with BTC down over 1k the past day.
7nine
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