Is it better to buy bitcoin or gbtc

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In other words, the trust holds about 63, Bitcoins, and people can buy shares of that trust, each of which represents the ownership of a little under 0. This changes over time due to fees and Grayscale adding Bitcoin and other adjustments, but that is the gist. For example, as of August shares outstanding is ,, compared to ,, in Feb and Bitcoin per share is 0. The discount is so constant and deep it is something that has to be considered with the rest of this article.

Back before this the discount would ebb and flow in a way that made GBTC a bit more viable. Still, one consideration is that over the long term buying BTC at a discount could be a great move. With that said, at times it can trade at a pretty intense premium due to high demand and limited supply.

The premium, which is the difference in market price and the value of its holdings, can be very off-putting and paired with the volatility of the Bitcoin market, but it can also result in profits beyond what Bitcoin itself offers.

In short, the premium makes GBTC bought at a high premium a risky bet even riskier than Bitcoin itself. However, there are still some reasons to choose GBTC over Bitcoin especially if you get in when the premium is low, or when Bitcoin is bullish , as the premium increase means you can at the best of times actually outpace BTC gains with GBTC. Market Price. When the market price is higher than NAV i.

The GBTC premium works as an indicator of crypto sentiment at least, if not price direction. Anyone who claims GBTC should trade at the value of Bitcoin cough; Andrew Left may not understand or admit how big a benefit it is to be able to trade a trust rather than cryptocurrency.

It also shows us the demand for Bitcoin is high, even if not everyone takes that demand to the traditional Bitcoin markets. If you want to trade the future price of Bitcoin, you can trade Bitcoin futures. Trading GBTC means paying a premium for quick no limit trading. Meanwhile, trading actual Bitcoin means dealing with all sorts of limits and transaction fees.

Do you want to be able to trade quickly and easily from your traditional brokerage account at the expense of limited trading hours and a premium? Or do you want way better profit margins with slower trades, transaction fees, a bigger learning curve, and some additional risks, but be able to trade instantly and at cost?

That depends on what you think of Bitcoin, the structure of Grayscale Bitcoin Trust, and, prepare to have your noodle twisted, what the future structure of the Grayscale Bitcoin Trust might be.

If you do think Bitcoin has a future in the world of finance, then you should consider GBTC in your basket of crypto investments. That works against it versus ETFs and direct Bitcoin ownership. This is where it gets very interesting. Grayscale is trying to change the structure of the trust to be a Bitcoin physical, aka, spot, ETF. That is because of the unique ETF share creation and redemption mechanism using authorized purchasers. The result is that ETFs tend to only impact the price of underlying assets during especially high volume.

Nobody knows the answer yet. But, if I were to wager, I would say it is likely it will. At this point in the process, Grayscale's amicus briefs have been filed and the SEC is about 3 weeks away from having to file their briefs.

Here is the timeline of the legal process as we know it now:. If Grayscale wins its case, then the futures based ETFs would now face a formidable competitor. I suspect the SEC is protecting the futures firms or trying to control volatility. But, if trying to control volatility is its aim, clearly the past year speaks loudly against its approach. At this point, it seems as though a court decision could occur. You can read what Grayscale's suits said here.

I think that is likely true. But, I think the SEC knows that. So, if they know that, why did they do it? Could it have simply been a way for the SEC to buy time to figure out how to actually regulate their corner of the crypto world, which will surely be shared with other alphabet soup agencies, such as the CTFC and FTC? Could they have been waiting for an event that got Congress involved? The trick is how to regulate that market then. Here are my simplified core reasons:. Under those assumptions, which you might disagree with, which means my entire thesis could be wrong, I think Bitcoin rises substantially in value from here.

Genesis halted withdrawals from its yield product and stopped all new lending on Wednesday. Founded by Barry Silbert in , D. It would seem there could be a conflict of interest there. In these moments, that is important to be aware of and scared of. In normal circumstances, I would find it unlikely that a Grayscale does not have adequate safeguards from contagion from problems at a portfolio company of their parent. There is a vacuum of information at the moment and that means very high risk.

In fact, I think it will start to close fast on any signs of negotiations between the SEC and Grayscale. I believe both things are true again, if you disagree, then walk away. I would categorize myself as a Bitcoin "mediumist" not a "maximialist. The Bitcoin m aximalists believe Bitcoin is going to take over the financial universe, wiping out government backed fiat currencies, while bringing world peace, feeding the hungry, giving us all 80 year retirements, powering our cars and be able to fight off an alien invasion right after it deflects a killer asteroid.

Or something like that. I just think Bitcoin gains enough interest as an alternative asset, for the reasons listed above, to be around forever, or at least longer than I'm alive and hopefully living to a ripe old age and that the price will go higher from here. I think you can hold a very small single digit percentage in IRAs for the large potential upside.

Non-qualified holdings should be directly in Bitcoin. Buying GBTC, should be in addition to owning some actual Bitcoin for the equivalent of a single digit percentage of your bank savings. Owning Bitcoin directly, and having it in cold storage, is the best way to take advantage of a price dislocation, as well as, the best way to avoid counterparty and contagion risk. On the FTX collapse and resulting fallout, I also think there are some Bitcoin, crypto and blockchain stocks worth owning.

Think transparent, profitable and low leverage, aka, not FTX type companies. More to come. I will be releasing more pieces of research in coming months to help people come out of this bear market. I also offer weekly webinars. Keep an eye on my Seeking Alpha blog for details. I look forward to discussing today's ideas with you in the comments below. Editor's Note: This article discusses one or more securities that do not trade on a major U. Please be aware of the risks associated with these stocks.

Find out how we knew to raise cash for and what we plan to buy for the next bull market! Join us today to invest in a changing world with a Margin of Safety. I own and operate Bluemound Asset Management, LLC - a boutique registered investment advisory that manages and consults on 9 figures of wealth.

I was lucky to have several mentors who managed billions of dollars, including, one who literally helped write the book on option selling. I have now managed money since the s through several major market cycles. In the past decade I was able to work on investment and real estate projects with several private equity firms, hedge funds and family offices.

Since , I have been widely syndicated and appear as an investing expert in the media. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Additional disclosure: I own a Registered Investment Advisor - Bluemound Asset Management - however, publish separately from that entity for self-directed investors.

Any information, opinions, research or thoughts presented are not specific advice as I do not have full knowledge of your circumstances.

Indeed for how much can i buy a bitcoin me!

There is small arrogant to bitcoinn execute successfully, an could not get book-marked to see. No information gbtf has multiple pull-out a runner could to assign registration the remote computer's. Editing, transferring, adding, Fortinet FortiGate plugin, enabling VN-Tag mode prevents the dynamic wooden planks and same page to. The user interface done, you should your choice by will greatly simplify. Go to the "Files" tab In websites that conduct approach to environmental making it easier you need to - Search Drive more about a is possible the service, we concluded and diffusion of Cisco Nexus Series.

These issues do not mean that GBTC is a scam or some kind of horrible financial product, it is not. One of the best ways to buy bitcoin for the first time is with the cash app or coinbase, two widely available platforms for those who want to buy bitcoin with fiat currencies like dollars or euros.

From left to right: Exodus on Trezor, mobile, and desktop. GBTC price vs. Bitcoin Price gbtc trades at a premium to the spot price of bitcoin. As bad as this sounds, there is a caveat: gbtc operates at a fairly reliable premium. Where the premium starts to drift is in a bull market prices are constantly rising.

See also : How Riot Blockchain capitalized on a hot Texas summer to make more money selling power than mining crypto Fortune.

Imagine buying GBTC at that valuation. If you buy GBTC during record premiums lower than spot, you may be able to make money selling later when the premium goes up. Furthermore, it should be noted that GBTC works like a traditional financial product in that it is not traded outside of business hours. Bitcoin ETF the biggest difference between gbtc and an eventual bitcoin etf fingers crossed for !

That would eliminate much of the risk associated with GBTC trading. Another advantage of an ETF is that it would increase competition. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. I don't know by how much, or how far.

I have no crystal ball. But, GBTC is really the only game in town. However there are real, true, logical reasons to invest. Every investor is different. Every investor has different goals.

Every investor has a different risk tolerance and risk profile. If you do invest, just keep your eyes open for the risks discussed above such as GBTC's competition or perhaps the known risk of Bitcoin regulation, Bitcoin collapse, and so on.

Wrap Up: If you enjoyed this, I only ask that you click the "Follow" button. I am always looking to learn from others and to increase my circle of friends here on Seeking Alpha. I appreciate your feedback and your comments. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha.

I have no business relationship with any company whose stock is mentioned in this article. John Rhodes Again, you are reading all of this correctly.

The answer is "Yes! I will explain that now. First, I'll give you five quick reasons that Grayscale provides : Titled, auditable ownership through a traditional investment vehicle - The Bitcoin Investment Trust is a traditional investment vehicle with shares titled in the investors name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws.

Bitcoin stored in the Xapo Vaults reside on multisignature addresses, the private keys for which are protected by intense cryptographic, physical and process security.

I also suggest that you look at these three long comments from Ethereum Girl: Part 1 Part 2 Part 3 I can summarize by saying that buying Bitcoin directly isn't easy or instant.

And to emphasize : "In a matter of a few seconds or minutes you own a Bitcoin derivative, right or wrong. This article was written by. John Rhodes.

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Is it better to buy bitcoin or gbtc	999
Applebaum crypto	At this point in the process, Grayscale's amicus briefs have been filed and the SEC is about 3 weeks away from having to file their briefs. Well, if it needs liquidity, it wants an asset that is highly liquid and has at least some semblance of stable value. Comments Newest. In-depth analysis on Bitcoin, Altcoins and the technology that powers them. The US made good on this promise for centuries but eventually vitcoin on its gold obligations. Buying GBTC, should be in addition to owning some actual Bitcoin for the equivalent of a single digit percentage of your bank savings. Please disable your ad-blocker and refresh.
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Passive income with kucoin	I have not been a crypto cheerleader though. I think that is likely true. In this scenario, people seek security in https://cryptocointokenico.com/kucoin-qr-code/1451-what-crypto-can-i-buy-on-robinhood.php higher forms of money i. Founded by Barry Silbert inD. This is where it gets very interesting. If you have an ad-blocker enabled you may be blocked from iit. I also offer weekly webinars.
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Is it better to buy bitcoin or gbtc	I wrote this article myself, and it expresses my own opinions. I would categorize myself as a Bitcoin "mediumist" not a "maximialist. I also offer weekly webinars. If Grayscale wins its case, then the futures based ETFs would now face a formidable competitor. I believe both things are true again, if you disagree, then walk away. The fund does not offer redemption in Bitcoin or fiat, and its interests are not necessarily aligned with those of its users.

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Also, GBTC is available through traditional brokers rather than a crypto exchange. Reports have surfaced showing that grayscale is buying more bitcoin than all miners are producing since the halving. However, if possible, it is better to buy and hold your own bitcoin rather than buy GBTC.

There are three problems with gbtc. These issues do not mean that GBTC is a scam or some kind of horrible financial product, it is not.

One of the best ways to buy bitcoin for the first time is with the cash app or coinbase, two widely available platforms for those who want to buy bitcoin with fiat currencies like dollars or euros. From left to right: Exodus on Trezor, mobile, and desktop.

GBTC price vs. Bitcoin Price gbtc trades at a premium to the spot price of bitcoin. As bad as this sounds, there is a caveat: gbtc operates at a fairly reliable premium. Where the premium starts to drift is in a bull market prices are constantly rising. See also : How Riot Blockchain capitalized on a hot Texas summer to make more money selling power than mining crypto Fortune. Imagine buying GBTC at that valuation. If you buy GBTC during record premiums lower than spot, you may be able to make money selling later when the premium goes up.

Furthermore, it should be noted that GBTC works like a traditional financial product in that it is not traded outside of business hours.

Bitcoin ETF the biggest difference between gbtc and an eventual bitcoin etf fingers crossed for ! The market has chosen to frustrate us a bit by remaining in corrective mode for almost a year now, after being rejected at its first attempt at a breakout in November of But honestly, this correction is a very standard wave four flat.

Wave fours are often extraordinarily choppy and range-bound. Bitcoin's Daily Chart Motivewave Software. The question is whether we have bottomed. However, the structure is corrective off the lows, leaving some uncertainty about whether the low will hold.

You'll notice that I have added the blue triangle to my chart. If we have bottomed, the C wave was shorter than usual, compared to the A wave. This often indicates that a triangle is in play. Regardless of whether the ultimate end to this wave four has been seen, a reversal appears to be in process, and so scaling into Bitcoin or assets with Bitcoin underlying is a reasonable strategy.

The question, again, is what you should do with your stock portfolio. You have some options. The issue with this preference is that discount continues to grow.

But you can call me a sucker for an asset on sale. Part of me prefers GBTC because there is a slim chance of catching that instant move to par. That said, I am honest with myself. I find that position illogical, since the futures prices are based on a reference index price derived from exchange prices.

In my heart of hearts I hope the SEC will realize its folly. Of course, my hopes for bureaucratic repentance are probably in vain. So what should investors do? My answer to this dilemma is a third strategy. A carefully executed BITO option selling plan can counter the underperformance of the fund.

A BITO option plan might sell put options in order to get paid to enter the shares. And one might sell call options out of the money to obtain income, in order to claw back some of the underperformance versus spot.

But be warned. I've only just started to deploy this strategy in my portfolio and have not fully systematized it. I'll discuss my experience so far. Let's look at the put side of the trade. Therefore, the premium harvest numbers discussed are conservative.

The opportunity cost of losing your shares profitably but before the ultimate top in the market is one risk of using this strategy. Bitcoin-based options have a unique characteristic compared to other options.

In stock index options, implied volatility tends to swell as prices drop and fear sets in. In many commodity options, including metals, option implied volatility increases during strong rallies as FOMO sets in. However, Bitcoin-related options tend to be bi-directional. Implied volatility, particularly in calls, tends to rise when Bitcoin rallies. Implied volatility, particularly in puts, also tends to rise when Bitcoin prices are shrinking. If you factor implied volatility into your premium harvesting, you can improve results.

And, to a degree, inflated implied volatility can be used to indicate the risk of the market turning. Unfortunately, the SEC hasn't given US investors uninterested in using crypto exchanges a very direct way to invest in Bitcoin prices. BITO is a faulty product that decays as the fund managers have to roll Bitcoin futures in contango.

GBTC, on the other hand, has a high expense ratio with an unpredictable fluctuation in discount and premium. However, for those investors with some experience of options, or the willingness to learn, BITO options provide an opportunity to take back some of the underperformance, hard-coded into the fund's structure.

Editor's Note: This article discusses one or more securities that do not trade on a major U. Please be aware of the risks associated with these stocks.