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Interesting
Yes, I agree. By ‘hard to buy’ I meant emotion says to sell to prevent further loss. I hit the ‘buy’ button on Tuesday and picked up more at 43.60 & 43.85. Glad I did and also glad it did not drop further.
I also sell a bit on the ATH days - when emotion says buy (FOMO days) and then I am ready to buy more on the next dip.
There is still a premium but it is less than 1% today. It takes around 1,042.43 shares of GBTC to equal 1 BTC. One share of GBTC = 0.0009593 BTC (this was the number in January 2021).
Premium often shrinks when there is a heavy dump and increases when there is a big pump.
Hard to buy on days it is down over 10-15% but on those days the premium is often lower - like today.
We should all be smiling in the morning if the price of BTC holds this 50k plus value over night. Good luck!
Everything will be fine - just some profit taking as 16M shares have traded today and average volume is only 2M. Once the selling ends it should rebound a bit - I think a good buying opportunity as the premium is now under 20% and was over 200 % a month ago.
Premium deduction - ETHE trading at same price today with Ethereum at 368 as it was when Ethereum was 338 earlier this week. Big bounce if Ethereum rises and premium goes back to previous levels due to volume. Yet premium still high compared to GBTC.
Shares outstanding of LTCN and each Share represented ownership of 0.09413112 Litecoin.
Once the dust settles each LTCN will be 9,4113112% of Litecoin plus a premium (20-40%??).
Not sure how long these prices will last - it may go higher but the current premium is around 1,000% at current level. Crazy as it may keep going up but it could also drop to $10.00 range eventually.
Do your homework before you buy.
OTC Markets | LTCN
New York, Aug. 17, 2020 (GLOBE NEWSWIRE) -- Grayscale Investments®, the world’s largest digital currency asset manager, today announced that Grayscale® Bitcoin Cash Trust and Grayscale® Litecoin Trust have received DTC-eligibility. Eligible Shares of Grayscale Bitcoin Cash Trust will be available to trade on OTC Markets under the symbol: BCHG and eligible Shares of Grayscale Litecoin Trust will be available to trade on OTC Markets under the symbol: LTCN. This announcement follows FINRA’s verification that the required diligence to begin quoting BCHG and LTCN pursuant to Rule 15c2-11 under the Securities Exchange Act of 1934, as amended, has been completed.
The Trusts are open-ended trusts sponsored by Grayscale and are intended to enable exposure to the price movement of each Trust’s underlying assets through an investment vehicle, avoiding the challenges of buying, storing, and safekeeping digital Bitcoin Cash or Litecoin directly.
SECONDARY MARKETS for the PRIVATE PLACEMENTS
The Trusts have offered private placements to accredited investors since March 2018. As of July 31, 2020, there were 6,028,000 Shares outstanding of BCHG and each Share represented ownership of 0.00941311 Bitcoin Cash. As of July 31, 2020, there were 2,500,800 Shares outstanding of LTCN and each Share represented ownership of 0.09413112 Litecoin. Shares created through each Trust’s respective private placement become eligible to sell into the public market after a statutory one-year holding period under Rule 144 of the Securities Act.*
All investors with access to U.S. securities will be able to buy and sell freely-tradable shares of BCHG and LTCN through their investment accounts in the same manner as they would other unregistered securities.
INVESTMENT OBJECTIVE
The investment objective of each Trust is for the Shares (based on assets per Share) to reflect the value of the assets held by such Trust, determined by reference to the appropriate TradeBlock index at 4:00 p.m. New York time, less such Trust’s expenses and other liabilities. TradeBlock's BCX Index is the reference for Grayscale Bitcoin Cash Trust and TradeBlock's LTX Index is the reference for Grayscale Litecoin Trust. The Trusts will not generate any income and regularly distribute Bitcoin Cash and Litecoin respectively, to pay for its ongoing expenses. Therefore, the amount of Bitcoin Cash and Litecoin represented by each respective Share gradually decreases over time.
The Trusts are not registered with the Securities and Exchange Commission and are not subject to disclosure and certain other requirements mandated by U.S. securities laws.
GRAYSCALE PRODUCT FAMILY
Grayscale's investment products are available to institutional and individual accredited investors through their respective periodic and ongoing private placements. In addition to its Bitcoin Cash (BCH) and Litecoin (LTC) offering, Grayscale’s single-asset investment products provide exposure to Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Stellar Lumens (XLM), XRP, and Zcash (ZEC). Additionally, Grayscale’s diversified investment product, Grayscale® Digital Large Cap Fund offers coverage of the upper 70% of the digital currency market by market capitalization. As of July 31, 2020, Grayscale managed approximately $5.2 billion in assets.
BCHG and LTCN represent Grayscale’s fifth and sixth publicly-quoted investment products. Grayscale® Bitcoin Trust (OTCQX: GBTC), Grayscale® Ethereum Trust (OTCQX: ETHE), Grayscale® Ethereum Classic Trust (OTCQX: ETCG), and Grayscale® Digital Large Cap Fund (OTCQX: GDLC) are also publicly-quoted and available to all investors with access to U.S. securities. Investors will be able to find current financial disclosure and Real-Time Level 2 quotes for Shares on www.otcmarkets.com/stock/BCHG/overview once trading for BCHG commences and www.otcmarkets.com/stock/LTCN/overview once trading for LTCN commences.
*Each Trust offers a private placement to accredited investors. The investment objective of each Trust is for its Shares to reflect the value of assets held by such Trust, less such Trust’s expenses and other liabilities. Because each Trust does not currently operate a redemption program, there can be no assurance that the value of the Shares will approximate the value of the assets held by such Trust, less such Trust’s expenses and other liabilities, and the Shares may trade at a substantial premium over, or a substantial discount to, such value and such Trust may be unable to meet its investment objective.
This press release is not an offer to sell or the solicitation of an offer to 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.
About Grayscale Investments®
Grayscale Investments is the world’s largest digital currency asset manager, with more than $5.2B in assets under management as of July 31, 2020. Through its family of 10 investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a traditional security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. For more information, please visit www.grayscale.co and follow @Grayscale.
Share represented ownership of 0.00941311 Bitcoin Cash.
Bitcoin Cash = $292.65 (8/20/20)
292.65 x 0.00941311 = $2.75
Today a share with a value of $2.75 is trading around $30.00.
Someone tell me why I see nothing but risk for BCHC Trading almost at 1000% premium when GBTC is trading about 20% premium.
What am I not seeing?
LTCN: each Share represented ownership of 0.09413112 Litecoin.
Litecoin on 8/19 $60.64
$60.64 x .09413112 = $5.71
LTCN closed at $50.00
So 875% premium on this?
What am I missing?
This appears to be higher due mostly to the 70% premium. Last week the premium dropped to 40% which would put $GBTC at 11.35 with BTC at 8,110. Cautious optimism
Not sure what is happening. Premium before the split was 65%, Monday & Tuesday it was a steady 75%, now around 55%. So a 20% drop in premium on top of a 15% drop in price for $BTC = recipe for a bit of a loss.
I am long on GBTC - do you all think the post split premium will remain at the current 75%? Last week it was trading around 63%. A 73% premium would make the price of GBTC about a dollar lower at 17.41 with BTC at $10,552 ... GBTC currently at 18.49.
To answer your question - divide your cost (plus any transaction fees) by 91. That will give you your target break even price after the split.
I am thinking that GBTC will begin trading around $18.50 tomorrow (1/26) if BTC remains around $11,212.00 and the premium remains around 65%.
Everyone should check their orders after close today. Not sure what happens with open orders set at limits with the pre-split price.
My understanding is one share of GBTC now equals 0.091 Bitcoin
After the split one share of GBTC equals 0.001 Bitcoin
Easy then to do the math to figure premium. I believe GBTC was trading on Monday with a 74% premium and today (Tuesday) it was around 60-65%.
0.091/91 = 0.001
If the premium remains the same after the split then one share will be the price of Bitcoin (at the time) divided by 1000 plus 65-75%.
So with Bitcoin (BTC) presently at 10,692 one share of BGTC should fall somewhere between $17.64 -- 18.71
($10.692 true value plus premium)
The price of GBTC should track with BTC. If GBTC grows slower the premium is shrinking and if faster the premium is increasing. The premium is actually determined by those who buy and sell but the value of one share should never fall below 1/1000 the value of one Bitcoin.
Holding at .0011?
It sure looked good in 2009
It sure looked good in 2009