They could sell on OTC and buy again directly from Secondmarket as accredited investors. Only thing they would lose is the ability to sell on OTC for another year. Even that is not so bad, since presumably Secondmarket will unsuspend redemptions at some point.
As I understand it SecondMarket will not resume redemptions; they only way out is via the OTC; trying to arbitrage with a 12 month cycle would very likely be ineffective.
Since I am truly long-minded, if when I truly have liquidity then I might sell some BIT via the OTC:GBTC and reinvest it at NAV through SecondMarket.
From the latest filing, they appear to be trying to resume redemptions. I don't know enough about Reg M to assess whether they are likely to be successful.
On September 23, 2014, the Distributor received a letter from the staff of the SECs Office of
Compliance Inspections and Examinations summarizing the staffs findings from an onsite review
of the Distributors broker-dealer activities conducted in June 2014. Among other things, the staff
stated that it had concluded that the Trusts redemption program appears to violate Regulation M
under the Securities Exchange Act because redemptions of Shares take place at the same time the
Trust is in the process of creating Shares. The Distributor and the Trust are in discussions with the
staff of the SEC in order to resolve the staffs concerns, although the Distributor and the Trust
cannot at this time predict the impact such a resolution may have on their respective activities. S