By CCN: Bitcoin Investment Trust (GBTC), described as “the first publicly quoted securities solely invested in and deriving value from the price of bitcoin” is an investment vehicle that enables investors in the public market to purchase bitcoin in a regulated and protected environment.
Why These Crypto Investors Are Buying Bitcoin at $6,179 a Pop
GBTC is the closest investment vehicle to an exchange-traded fund (ETF) in the sense that it enables investors to invest in bitcoin without having to worry about storing or safekeeping the dominant cryptocurrency.
Traded on OTC Markets, one share of GBTC represents 0.00098409 BTC, about one-thousandth-of-one BTC. Currently, each GBTC share is trading at $6.28, which would put the implied value of bitcoin at $6,179.
The price of Bitcoin Investment Trust shares has increased by nearly 50 percent in the past month. | Source: Yahoo Finance
In contrast, bitcoin is being traded in the global cryptocurrency exchange market on regulated exchanges like Coinbase and Gemini at $5,165, demonstrating a staggering $1,014 premium versus the spot market.
In other words, secondary market GBTC investors are getting taken to the cleaners to the tune of 18 percent – all because they don’t have access to an actual exchange-traded fund that tracks the fair market price of bitcoin.