What is GBTC and How Do I Invest in Bitcoin?
We get it. For the average investor, gaining exposure to digital currencies like Bitcoin has been challenging. Bitcoins don’t trade on traditional exchanges, don’t flow through the same settlement systems as stocks or bonds, and require technological know-how to store them safely and securely.
Fortunately, you can invest in Bitcoin without actually having to buy Bitcoin itself with Grayscale Bitcoin Trust (symbol: GBTC), an investment vehicle that enables investors to gain exposure to the price movement of Bitcoin. Initially launched as a private placement in 2013 for accredited investors, GBTC’s public shares debuted on the OTCQX® Best Market under the symbol GBTC in May 2015.
GBTC provides an easy way to add exposure to Bitcoin in an investment portfolio because it’s solely and passively invested in Bitcoin and designed to have its share value reflect the performance of Bitcoin (based on Bitcoin per share*), less fees and expenses. GBTC is the largest Bitcoin investment product globally, holding more than 1.3% of the outstanding Bitcoin supply,** and the only U.S.-based publicly quoted Bitcoin investment product.
Modeled after popular commodity investment products, GBTC’s product structure is familiar to financial and tax advisors. Whether you personally manage your investments or work with a financial advisor, buying and selling GBTC is as easy as buying and selling any other U.S.-traded security. Anyone can buy and sell shares of GBTC throughout the trading day at prices dictated by the market.*** It’s really that simple. GBTC is also available within tax-advantaged accounts such as IRAs and 401(k)s.
It can be daunting to start investing in digital currency for those who are unfamiliar with things like private keys, wallets, storage and security, and the new accounts needed. Conveniently, GBTC enables you to invest in Bitcoin without worrying about any of that.
To learn more about why investors are adding Bitcoin exposure to their portfolios, we encourage you to review our Bitcoin and the Rise of Digital Gold report.
*Each Share of Grayscale Bitcoin Trust represents 0.00097855 Bitcoin, as of July 15, 2019. For the most current ratio of Bitcoin per share, please visit https://grayscale.co/Bitcoin-trust/.
**as of July 17, 2019
***Because the Grayscale Bitcoin Trust private placement does not currently operate a redemption program, there are no assurances that the value of the private placement shares will approximate the value of Bitcoin held by the Trust when traded on a secondary market – like OTCQX. As such, the shares of the public quotation may trade at a substantial premium over, or substantial discount to, the value of the Bitcoin held by Grayscale Bitcoin Trust.
This content is not an offer to sell or the solicitation of an offer to sell or buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Where you can find GBTC
Invest in GBTC today at any of the following brokerage firms: