Re: GBTC Bitcoin Investment Trust Observer

Does anyone know how many bitcoin GBTC holds? Can they prove that they have that amount? Is it in line with the fund's market cap?

Market cap is 1.63x the underlying bitcoin, that's why the Sweden and Stuttgart ETNs I posted about are a much better value, near zero premium instead of 63%. As for them "proving" they have that amount, I don't know and it is a good question! I do know that their holdings are not insured, so futures imo are safer (as well as being basically premium-free).

63% premium is insane! I agree that futures are a better option, or directly owning crypto. It sounds like if bitcoin does really crash hard, GBTC holders will be hit the hardest.

Everyone knows other funds will come out and the premium will go away, but until then there is only one game in town. Lots of FUD to get people to share their GBTC, if we get true bear market territory (sub 9k) then you will see the premium disappear. Until then GBTC holders are betting the price goes up 60% before other funds come around.

During the China FUD back in September, when BTC got cut in half almost overnight, GBTC still kept like a 75% premium. It is the only easy game in town, so the premium stays until a true ETF comes out. The SEC has said BTC appears dangerous so don't expect an ETF soon.