How does grayscale bitcoin trust work and what are its advantages?

1 answers

• Jan 14, 2022 · 3 years ago
  Grayscale Bitcoin Trust (GBTC) is a popular investment vehicle for those looking to gain exposure to Bitcoin. It works by allowing investors to buy shares of the trust, which are backed by Bitcoin held by the trust. This means that as the price of Bitcoin fluctuates, the value of the shares will also fluctuate. The main advantage of GBTC is that it provides a simple and familiar way for investors to invest in Bitcoin without having to deal with the complexities of buying and storing the cryptocurrency themselves. Additionally, GBTC is traded on the stock market, providing liquidity and making it easy for investors to buy and sell shares. However, it's important to note that GBTC can trade at a premium or discount to the underlying value of the Bitcoin it holds, so investors should carefully consider the price they are paying for the shares.
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