What is the purpose of Grayscale Bitcoin Trust and how does it work?

3 answers

• Muhammad Shahid UsmanMay 08, 2025 · 3 months ago
  Grayscale Bitcoin Trust (GBTC) is a financial product offered by Grayscale Investments that allows investors to gain exposure to Bitcoin without directly owning it. GBTC holds Bitcoin on behalf of its investors, who can buy and sell shares of the trust on the stock market. The purpose of GBTC is to provide a convenient and regulated way for investors to invest in Bitcoin, especially for those who may not be able to or prefer not to buy and store Bitcoin directly. It offers a familiar investment structure similar to traditional stocks and eliminates the need for investors to set up and manage their own cryptocurrency wallets.
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• mekukunAug 09, 2021 · 4 years ago
  Grayscale Bitcoin Trust is a popular investment vehicle for individuals and institutions looking to gain exposure to Bitcoin. It operates as a trust, meaning that it holds Bitcoin on behalf of its investors. The trust issues shares that can be bought and sold on the stock market, allowing investors to gain indirect exposure to Bitcoin's price movements. This structure provides a regulated and secure way for investors to invest in Bitcoin without the complexities of managing their own digital wallets. It also offers the potential for certain tax advantages, depending on the investor's jurisdiction.
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• Dev PathakFeb 27, 2021 · 4 years ago
  Grayscale Bitcoin Trust (GBTC) is a trust that holds Bitcoin and allows investors to gain exposure to the cryptocurrency. The trust is managed by Grayscale Investments, a well-known player in the cryptocurrency space. Investors can buy and sell shares of GBTC on the stock market, making it a convenient way to invest in Bitcoin. However, it's important to note that GBTC trades at a premium or discount to the underlying value of the Bitcoin it holds. This premium or discount is influenced by factors such as demand, supply, and market sentiment. Therefore, investors should carefully consider these factors before investing in GBTC.
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