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Author: Admin | 2025-04-28
In briefThe Grayscale Bitcoin Trust is a financial vehicle that enables investors to trade shares in trusts holding large pools of Bitcoin.Shares in the fund track the price of Bitcoin, but only roughly.Grayscale also offers several other exchange-traded products, tracking Ethereum, Bitcoin Cash and Litecoin among others.Grayscale's two-year battle to launch a Bitcoin spot exchange-traded fund (ETF) may finally be turning a corner. On August 29, 2023, the United States Court of Appeals for the DC Circuit sided with Grayscale over the U.S. Securities and Exchange Commission (SEC) in the crypto firm's quest to launch a Bitcoin ETF. The price of Bitcoin rose significantly following the news.The Grayscale Bitcoin Trust (GBTC), which was launched in 2013, enables investors to trade shares in trusts that hold large pools of Bitcoin, with each share priced at near-enough the price of Bitcoin. As of August 2023, it has over $16 billion assets under management.Back in 2021, it had announced plans to to turn the GBTC into a Bitcoin ETF, which could be traded "like a stock on a national securities exchange, such as NYSE Arca or Nasdaq," in the words of Craig Salm, Grayscale’s Chief Legal Officer.In June 2022, the Securities and Exchange Commission (SEC) rejected Grayscale's ETF application, citing similar reasons given for other rejections for Bitcoin ETFs: that the product failed to protect the public's interest.As of August 29, 2023, GBTC trades at $20.40.GBTC stock price todayHow does the Grayscale Bitcoin Trust Work?The Grayscale Bitcoin Trust is similar in structure to a closed-end fund. Large institutional investors wire Grayscale some money (or some Bitcoin), then Grayscale invests that money into Bitcoin and sells shares in the trust on the stock market. It’s one of the only ways that US investors can gain exposure to Bitcoin through the stock market.Shares in the
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