Crypto, Blockchain, DLT

[gfp927z]

It looks like the best way to trade the cryptocurrency sector at this point may be the Bitcoin Investment Trust (GBTC), which is a quasi-ETF that represents 1/10 of a Bitcoin. This trades on the OTC, so can be traded in a regular brokerage account.

The downside is that it trades at a huge 70% premium to the underlying Bitcoin price. This in itself is probably not a problem now, but will become one once a bonafide Bitcoin ETF is allowed to trade by the SEC. At that time the big premium on the GBTC will evaporate, but it may be quite a while before that happens.

On the plus side, with GBTC you don't have to set up one of those hack prone crypto accounts or digital 'wallets'. That seems like a big advantage, considering how often these account are cleaned out by hackers.

Here's more info on GBTC from a recent article (below).

Well, looks like cryptos are the new bio stocks, with the advantage that you don't need a PhD in molecular biology lol -



>>> 4. Investing through a brokerage firm.



https://www.thestreet.com/story/14229944/5/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html


For investors wanting to avoid the risks and hassle of setting up digital wallets, they can invest in bitcoin indirectly through Bitcoin Investment Trust (GBTC) in the OTC market. GBTC is a bitcoin-based fund that acts like an ETF, whose shares can be bought and sold through traditional brokerage firms. Each share represents about one-tenth of a bitcoin. But the convenience comes at a steep price: The fund has been wildly popular, which has caused shares to soar to the point where a share is now priced about 73% higher than the value of the underlying bitcoin. (GBTC recently traded at $357, which values a single bitcoin at about $3,570. But Bitcoin recently traded at $2,060.88). Also, GBTC charges a 2% management fee on top of that.

The frothy premium may not be an immediate concern for shareholders, since GBTC is the only bitcoin ETF available. However, if the Winklevoss Brothers, famous for their controversial lawsuit over their role in Facebook's start, ever get their Winklevoss Bitcoin ETF approved, it could be a different ballgame, and GBTC values could plunge. (The SEC turned down the Winklevoss ETF earlier this year over lack of regulation, but agreed to reconsider it later). "As soon as there's more products, more liquidity and more choice, the premium will disappear," said Hayter. <<<