If you think the bitcoin drop was painful, it was even more painful to GBTC Bitcoin Trust investors...
GBTC has been trading at a discount for several months now, basically ever since the Canadian Bitcoin ETFs launched.
While this isn't the end of the world it has been frustrating for GBTC investors as the discount continues to get steeper and steeper.
It hit a record 19% discount on Friday:
(Source: https://finance.yahoo.com/news/largest-bitcoin-fund-dives-record-145017914.html)
Again, while this isn't fun, it also offers an opportunity...
While the fund is likely to remain at a discount for some time, there is also now a 19% upside built in at some point.
At some point the fund will convert to an ETF and or get the discount sorted out.
At that point GBTC investors buying right now can make 19% on their money without bitcoin moving.
So, while it's painful for those already in the trust, it offers a great opportunity for those looking to buy bitcoin now and plan on holding it for some time.
Personally I am going to pick a few more in my retirement account as I believe they will get that discount closed at some point in the near future.
Stay informed my friends.
-Doc
Yeah what is with that. It almost makes me wanna buy some, however I don't know if there is a problem. I did buy some trying to do a trade, btc went up and they damped GBTC on me and I am stuck in it. LOL It was like they literally scammed me or something. I don't get it. I bought some Coinbase, not too much, and then btc had to go and do all this too. Weird. Scammed. Luckily for me I only bought a little bit of GBTC, nothing compared to what I used to have, .001% so it's finer I didn't hardly loose anything. Also you don't loose until you sell. But this makes me think twice about going big into it. I think GBTC could damp to 8 bucks again one day - lol! (If btc does keep going down) But you can't day trade GBTC any more because you can't trust that the premium won't just go down on you for no reason?? Maybe it is a deal now, I have no idea. Usually it is the best time to buy.