#Bitcoin #Ethereum #GBTC #BTC #ETHE #ETH #BitcoinETF #Grayscale What’s up with Grayscale? BTC vs GBTC || ETH vs ETHE? Grayscale Premiums GBTC worth it? The opinions expressed in the video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. GBTC is the largest and most popular crypto option for accessing Bitcoin. The Grayscale Bitcoin Trust (GBTC), is a closed-end fund holding Bitcoin in “cold storage,” or offline No redemption mechanism What is GBTC A closed-end fund has a fixed number of shares offered by an investment company through a private offering - no redeeming or creation of shares Open-end funds (eg mutual fund) are offered through a fund company that sells shares directly to investors A closed-end fund functions much more like an exchange-traded fund (ETF) than a mutual fund Open End & Closed End Funds Differences Bitcoin ETFs are exchange-traded funds that track the value of Bitcoin and trade on traditional market exchanges rather than cryptocurrency exchanges They allow investors to invest in bitcoin without having to go through the hassle of using a cryptocurrency exchange while providing leverage to its price They have no premium They have very low management fees 1% to 0.75% and The CI Galaxy Bitcoin ETF (BTCX), which came to market in early March, charges an even lower 0.40% ETFs Fraud They get hacked or lose their coins The 2% management fee It only trades during market hours Counter-party risk ie you do not control your bitcoin You cannot download your bitcoin Can trade at a high premium eg 40% in Dec 2020 GBTC Risks 2% fee is pro-rated on a daily basis Easy on-ramp Available in retirement accounts Available to people with regular brokerage accounts who cannot get access to crypto exchanges Currently trades at a serious discount GBTC Advantages 40% premium in December 19% discount now Current GBTC Premium Last 90 days - the BTC stagnancy Bitcoin down 4% GBTC down 22% There’s your 18% GBTC Premium - Closer Look Bitcoin price skyrocketing Money poured in to buy Bitcoin Zero selling Demand exceeds supply Why The Premium in Dec? No redemption capability People are accessing different on-ramps eg Paypal, Kraken, Coinbase, etc Different funds are now available eg skybridge Canadian and Brazilian ETFs with far lower fees Supply exceeds demand Bitcoin Price has been flat for 3 months Why Is It So Discounted Now? The GBTC Competition Grayscale Premiums But it Goes Beyond Bitcoin TICKER PREMIUM Cost $GBTC: BTC -18.14% $39.28 $ETHE: ETH -8.72% $38.80 $GDLC: Large Cap 4.43% $39.00 $ETCG: Eth Classic -42.85% $53.56 $LTCN: Litecoin 1172.62% $394.45 $BCHG: BCH 166.14% $33.10 What will Happen to GBTC? Lifecycle of a Grayscale product: 1 2 3 4 To own 1 BTC worth you need to buy 1060 GBTC shares Costing you $41806 Saving you $8,225 The Math Today BTC PRICE GBTC BTC per GBTC GBTC Premium over BTC $50,031.100 $39.43 0.000943172 -19.68% To own 1 Bitcoin w GBTC 1060.252001 $41,806 Savings $8,225 It will convert to an ETF Problem is we do not know when - probably autumn winter 2021 Still a great on ramp with 20% discount Especially for those who want to sell at top of Bull Market - take profits and then buy BTC proper Once converts to ETF - 2% fee will go away and of course the Discount to NAV will also disappear GBTC has to be granted an ETF first as they hold 5% of all BTC with $32.7bn or 654,885 BTC Conclusion Patreon.com / Want more? (you know what to do!)