What happens if GBTC converts to an ETF?

Can I convert GBTC to ETF?

That said, he estimated that GBTC’s converting to an ETF would come in 2022 “at the earliest” but the SEC may still be uneasy about spot bitcoin ETFs because it’s hard to protect against market manipulation and fraud when directly owning bitcoin.


Following the SEC’s approval of a futures-based ETF last October, Grayscale re-submitted an application to convert GBTC into an ETF. “The conversion to an ETF is the best way for the product to track its underlying assets,” said Craig Salm, chief legal officer for Grayscale Investments, in an interview.

How is GBTC different from an ETF?

The main difference between Bitcoin Fund and Bitcoin ETF is that Bitcoin ETF can only be purchased and sold at the market trading time. In contrast to that, Bitcoin Fund has a longer period of time where they can be traded. Also, Bitcoin Fund has been in the market for a longer period of time than Bitcoin ETF.

When did GBTC become ETF?

The regulator, which has not yet approved an ETF that invests in bitcoin directly, is expected to rule on GBTC’s conversion to an ETF in July when its 240-day review period expires.

Can I convert GBTC to Bitcoin?

Grayscale Investments files with SEC to convert popular GBTC into a Bitcoin spot ETF. Grayscale Investments announced Tuesday that it’s filed with the U.S. Securities and Exchange Commission to convert the popular Grayscale Bitcoin Trust (OTC:GBTC) into a Bitcoin spot ETF.

Can I buy GBTC on Vanguard?

Vanguard customers can purchase any over-the-counter bitcoin or crypto funds, such as the Bitwise 10 Crypto Index Fund (BITW) or Grayscale Bitcoin Trust (GBTC), to name a few. Customers can also buy shares in publicly traded bitcoin mining companies like Riot Blockchain and Argo Blockchain.

How is GBTC not an ETF?

Here’s the difference. GBTC is a trust that holds bitcoin, but trades like a closed-end fund. Therefore, it can trade at a huge discount or premium to the underlying price to bitcoin, which can either enhance or detract from an investor’s total return. BITO is an ETF that holds bitcoin futures contracts.

Is GBTC a Bitcoin ETF?

GBTC first fell into a discount last February as the number of shares outstanding skyrocketed, after years of trading at a premium to Bitcoin. However, the launch of Bitcoin ETFs in Canada and the first U.S. derivatives-backed Bitcoin ETFs eroded GBTC’s competitive advantage.

Is GBTC a good way to buy Bitcoin?

Bottom line: GBTC is not a good buy right now. Most investors would be better served studying the stock market, and compiling a watchlist of profitable companies setting up in proper bases, when looking for stocks to buy.

Where can I buy GBTC stock?

How Can I Buy GBTC? The trust is traded on the over-the-counter market. Investors can buy shares in GBTC just as they would other stocks and shares — through a broker or advisor, or via an online trading platform.

What is the best BTC ETF?

Best Bitcoin ETFs Of March 2022

  • Best Bitcoin ETFs Of February 2022.
  • ProShares Bitcoin Strategy ETF (BITO)
  • Simplify U.S. Equity PLUS GBTC ETF (SPBC)
  • Valkyrie Bitcoin Strategy ETF (BTF)
  • VanEck Bitcoin Strategy ETF (XBTF)
  • Global X Blockchain & Bitcoin Strategy ETF (BITS)
  • Valkyrie Balance Sheet Opportunities ETF (VBB)

Why is GBTC trading below Bitcoin?

Shrinking demand for GBTC’s shares — and its expanding discount — stem partly from the proliferation of alternative ways to access Bitcoin, with many offered at far lower cost. We expect the discount to linger if Bitcoin futures ETFs win approval in the U.S. and undercut GBTC’s 2% expense ratio by 50% or more.

Do 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.

Can I buy GBTC on Fidelity?

No, Fidelity does not offer crypto trading at the moment.

Is there a Bitcoin ETF in the US?

The ProShares Bitcoin Strategy ETF (BITO, $24.15), which launched on Oct. 19, became the first U.S. ETF to provide investors with exposure to Bitcoin futures.

Why is GBTC so discounted?

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.

Is there a lock up period for GBTC?

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.

Can I sell my GBTC shares?

As an investment vehicle which trades over-the-counter, GBTC is available for investors to buy and sell in the same way as virtually any U.S. security. As an example, GBTC can be traded through a brokerage firm, and it’s also available within tax-advantaged accounts like IRAs or 401(k)s.

Can you link Coinbase to Fidelity?

You can add your Coinbase account(s) to your Fidelity brokerage dashboard for view-only access. This means it will show your current crypto balance and its changes in real-time. Login to your Fidelity portfolio dashboard. On the left sidebar, click on “Add Non-Fidelity Accounts.”

Is GBTC trading at a discount?

GBTC has been the preferred venue for institutional investors to gain exposure to crypto without having to purchase bitcoin directly, but the shares have traded at a steep discount over the past year as demand for the product shrank.

What is the best performing bitcoin ETF?

1. ProShares Bitcoin Strategy ETF (BITO) ProShares Bitcoin Strategy ETF is an actively-managed exchange-traded fund that seeks capital appreciation by investing in bitcoin futures contracts. BITO is the first futures-based cryptocurrency ETF on the market and is also the largest, as measured by assets under management.