How To Buy $1 Worth Of Bitcoin For 85¢

Stéphane Renevier

about 1 year ago4:13 mins

How To Buy $1 Worth Of Bitcoin For 85¢

Crypto specialist Grayscale has some exciting news: it’s filed to convert its “Grayscale Bitcoin Trust” (GBTC) into an exchange-traded fund (ETF). And if regulators give it the go-ahead, GBTC – currently trading at a 15% discount to bitcoin’s market value – could suddenly snap back in line with the OG cryptocurrency. That’s where you come in…

Why is Grayscale Bitcoin Trust currently trading at a discount?

Plenty of investors see GBTC as an ETF, but that’s not actually the case.

See, normal ETFs have “authorized participants” that can trade the underlying assets for the shares they represent at market value. The role of those participants is important: by creating or redeeming shares, they make sure that the market price of the ETF is trading in line with its net asset value.

GBTC is

Limited introductory offer

Subscribe Now 50% Off

Get full access to daily stories, insights, deep-dives, interviews, podcasts, and more

Have an account? Log in