Based on the current timeline till July 2022, you could potentially realize this gain in a 6-month period.
The risk is of course if the SEC doesn’t approve the conversion, which is still a possibility. This is because an ETF backed by a physical asset such as the GBTC ETF would also be subjected to market manipulation and counterparty risk in crypto markets that are completely outside of the regulator’s direct control.
If no approval is given, there is no guarantee that the discount will not further expand, which could result in additional losses, even if bitcoin prices stagnate.
In addition, if bitcoin prices are to plummet, holding onto GBTC will also result in losses.
- Conclusion: Should you be buying the GBTC ETF?
- How many gbtc is one bitcoin
- Quick look at the charts: BITO
- How much gbtc is one bitcoin
- How many gbtc is 1 bitcoin
- What Is Grayscale Bitcoin Trust Tokenized Stock FTX (GBTC)?
- How many gbtc is one bitcoiner
- Note: Interested in getting periodic e-mail notifications when articles are published here? Drop your e-mail in the box below!
- How many gbtc is one bitcoins
- How many gbtc is one bitcointalk
- Is GBTC an ETF?
Conclusion: Should you be buying the GBTC ETF?
There is no guarantee that GBTC, which is still under a private trust status, will ultimately revert to an ETF status.
How many gbtc is one bitcoin
Back in 2017, it applied to be an ETF but was rejected by the SEC as the latter indicated it wasn’t yet comfortable with the bitcoin market.
With the bitcoin market booming and the presence of a bitcoin futures ETF, the thinking is that regulators should also be comfortable with the underlying market and approve GBTC ETF application.
Quick look at the charts: BITO
There’s nothing quite like looking at the charts. So while we await the results of GBTC’s application, let’s take a look at BITO’s chart on TradersGPS:
There is not much data available due to the newness of this counter.
Hence you might note that the candles were initially black/white, and only gained a red colour from 29 Nov onwards. For long trading positions, the appearance of a red candle indicates an exit signal.
How much gbtc is one bitcoin
BITO ETF
GBTC, back in Q4 2021, filed for an application to convert itself into a spot ETF. This begins a review by the Securities and Exchange Commission (SEC), which is underway up till July 2022.
While there is already an existing bitcoin ETF, the ProShares Bitcoin Strategy ETF or BITO, this ETF does not hold actual Bitcoins, unlike GBTC.
Instead, BITO owns derivate contracts linked to Bitcoin which are traded on the Chicago Mercantile Exchange, rather than actual bitcoin itself.
This might result in additional costs associated with the purchase of BITO such as costs involved in rolling these derivative contracts etc., in addition to its typical expense ratio.
GBTC ETF, if it does get SEC approval, represents an investment that is backed by bitcoins, not derivatives tied to it.
This isn’t the first time that GBTC tried to convert itself into an ETF.
How many gbtc is 1 bitcoin
Considering that GBTC represents trust stocks, its price isn’t likely to reach the level of the asset it represents. Many investors understand that investing in Bitcoin and getting direct profit from the BTC price growth is much more convenient than investing in stocks and getting some income.
Bitcoin is the most popular and the most expensive cryptocurrency. The BTC price is highly volatile. But the trend is bullish.
During a little bit more than a decade, the coin price has made the way from less than one dollar to more than 60,000 (an all-time high was observed at the end of October 2021).
We can compare public keys with bank accounts. They are seen by all blockchain participants and used to receive funds. Private keys are used to prove that coins stored in the blockchain are yours.
Private keys can be compared to a PIN code of your card. You provide a PIN code to access your money. In the case of Bitcoin, you provide your private key to access coins stored in the blockchain.
New coins are produced by mining. Mining requires solving highly complex computational puzzles and is extremely energy-demanding.
What Is Grayscale Bitcoin Trust Tokenized Stock FTX (GBTC)?
To avoid confusion, we need to clarify that here we talk about two phenomena: GBTC, or Grayscale Bitcoin Trust, and its FTX tokenized stock.
How many gbtc is one bitcoiner
There are a lot of variables still at play and betting on an ETF conversion that closes the discount is not a sure thing. But in the meantime, I’m probably still capturing most of the price movement of bitcoin in case the price keeps heading up.
Even though it likely won’t be as correlated with bitcoin’s price as BITO would be, it’s still correlated.
That and the potential to capture that discount closing in time is why I’m still hanging on to GBTC over BITO.
Note: Interested in getting periodic e-mail notifications when articles are published here? Drop your e-mail in the box below!
Also read:
LIVE BLOG: Bitcoin ETF Launch Day
ETFs of CEFs: Up To 9% Yields Available For Income Investors
ETF Battles: Which Bond ETF Is The Better Strategy For Rising Interest Rates? – FLOT vs.
How many gbtc is one bitcoins
It’s simply uncomfortable with the idea approving an unregulated asset in an ETF wrapper usually citing the greatest hits – potential for fraud, manipulation, etc.
It also requires the faith that Grayscale will follow through on its plans to convert to an ETF. Right now, GBTC is in a fairly enviable position. It’s got nearly $40 billion in assets in a product that charges 2% annually.
Does Grayscale really want to mess with such a cash cow? It might need to in order to compete since a spot bitcoin ETF would be far superior to a bitcoin trust in terms of structure. But would a lot of money flow out of GBTC and into new spot bitcoin ETFs? That’s the big question and the answer could be “maybe not”.
How many gbtc is one bitcointalk
This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
Bitcoin and cryptocurrencies are some of the hottest asset classes of 2021.
Is it a mega bubble waiting to pop or will its red-hot momentum continue well into 2022? We shall leave that discussion for another day. In this article, I will like to talk about the Grayscale Bitcoin Trust, or GBTC for short, and how its potential transition into GBTC ETF could allow you to purchase Bitcoin at a discount.
Is GBTC an ETF?
Before we dive into the details, let’s first be clear that Grayscale Bitcoin Trust (GBTC) is NOT an ETF.
The role of these participants, which is to create or redeem shares, ensures that the market price of the ETF is trading in line with its net asset value.
GBTC on the other hand is different. It allows investors to buy and sell shares in the secondary market but there are no authorized participants or market makers to ensure that the price of GBTC and the value of the bitcoin held in its private trust are the same.
The lack of a market maker is the major reason why GBTC’s price is highly dependent on demand for its shares and explains why that share value can deviate substantially from its net asset value.
Source: Ycharts
As can be seen from the chart above, GBTC, which has been trading at a substantial premium to its NAV before 2021, is now trading at a 21% discount.
What is 1000000 FTX Token worth in GBTC ?
1000000 FTX Token is equal to 2,066,828.40 Grayscale Bitcoin Trust tokenized stock FTX. We have added the most popular Fiat Currencies and Crypto Currencies for our Calculator/Converter.
You can convert FTX Token to other currencies from the drop down list. Selling 1000000 FTX Token (FTT) you get 2,066,828.40 Grayscale Bitcoin Trust tokenized stock FTX (GBTC) at 2022-08-09 03:20 AM.
This page provides the exchange rate of 1000000 FTX Token (FTT) to Grayscale Bitcoin Trust tokenized stock FTX (GBTC), sale and conversion rate.
We are providing FTT to GBTC converter tool with real-time online exchange rate calculator. Moreover, we have added the list of the other popular conversions for 1000000 FTX Token (FTT).
So, let us check what they mean and how they are connected.
Grayscale Bitcoin Trust is a trust that offers to invest in Bitcoin. However, it is not the common sense of the word. In a trust, investors hold stocks.
Stocks are shares in a company. And trusts hold physical commodities, gold for example. Grayscale Bitcoin trust holds Bitcoin only.
However, it is registered by the Securities and Exchange Commission (SEC) and is reporting to the Commission.
Now, the second part of the crypto comes – “tokenized stock FTX”.
Stocks are not cryptocurrency. But stocks can be tokenized, and with it, they become a cryptocurrency and can be traded just like any crypto.
Tokenization is the process of creating digital tokens on a distributed ledger or blockchain.
