anyone could explain the hell is "Each GBTC share represents ownership of approximately 0.1 bitcoin" supposed to mean? is one share 1/10th of an bitcoin or not?
My understanding is that they refer to the fees that Greyscale will discount from the BTC returned if/when they redeem BIT shares.
[ Institutional funds ] would never, ever, send money to unregulated exchanges. It's simply against their basic policies. Institutional money has no mechanism of acquiring significant amount of BTC, except for the FBI auctions which is not usual way how they do business. Even if they want to buy BTC they can't, putting aside question whether they want to do that or not. That's why I've said any "good-intended" announcement of big money entering BTC which ends up being false, leaves much more damage then idiot who announced it imagined.
Can't such a fund strike a private contract with a sufficiently reliable middleman, who would buy the bitcoins on the exchanges or other places, shouldering the risks, and then sell them to the fund?
I consider the GBTC the first "crystal clear" way for someone to get BTCs and not worrying about losing their money.
Unless Greyscale loses their BTC because of hacking, accidents, embezzlement, etc.? If I recall correctly, they are not insured against those things, and refuse to be held responsible for any resulting losses.
The price will definitely find its way - thats how free market works.
My understanding is that discrepancies between the GBTC price and the market price of "raw" BTC will take many months to be equalized by arbitragers, because the BIT shares would have to be redeemed by Greyscale (at turtle speed again, perhaps?), or issued by Greyscale and then held for a year. is this correct?