The trust requires a minimum investment of $50,000 and charges an annual fee of 2.0 percent, which accrues daily, for accredited investors who wish to subscribe to the Trust as a private placement. On the other hand, investors are eligible to purchase as little as one share of the GBTC public quotation.
Read moreWhy is Grayscale Bitcoin Trust trading at a discount?
The trust is managed by Grayscale Investments, which is a unit of Digital Currency Group. Why are GBTC shares trading at a discount? Owing to the reduction in demand for its products , GBTC shares have traded at a sharp discount for almost a year, i.e., the discount has rapidly grown since last February.
Read moreWhen did Grayscale Bitcoin Trust go public?
Grayscale, a subsidiary of Digital Currency Group, is a pioneer in digital-asset management, and its Grayscale Bitcoin Trust, a closed-end fund, has been publicly listed since 2013 . At one point, it was one of the few ways for traditional investors to credibly gain exposure to the world’s No. 1 digital asset: bitcoin.
Read moreWhat happens when GBTC unlocks?
The trade works when funds borrow bitcoin to deposit into GBTC, then they have shares of GBTC that are worth more than the bitcoin they bought. When the unlock period occurs the shares, redeemable for bitcoin, have a mark-up over the price of bitcoin and thus the fund finds itself in possession of free bitcoin .19 Tem 2021
Read moreDoes GBTC have a lockup period?
Since the beginning of 2020, the lockup period of GBTC shares of the Grayscale Bitcoin Trust became SEC-compliant and the lockup period was reduced by half (from 1 year to 6 months). It was one of the main factors that increased institutional interest in GBTC.
Read moreDo you have to hold GBTC for 6 months?
Due to the nature of the Grayscale Bitcoin Trust, institutional investors who buy the fund directly must hold the shares for six months before selling on the secondary market . July 17 is one of the largest days of the unlock period, with 16,240 bitcoin worth of GBTC becoming available to trade, according to Bybt.com.10 Tem 2021
Read moreHow long do you have to hold GBTC?
This will allow accredited investors who purchased shares in the Trust’s private placement to have an earlier liquidity opportunity, as the statutory holding period of private placement shares would be reduced from 12 months to 6 months , according to SEC rules.
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