Full story: https://forrestvisions.com/blog/difference-between-gbtc-and-btc/


As Grayscale got $700m in funding recently I just wanted to share some details about GBTC that many people might not understand. You can read the full article above, but here are the main takeaways:



   

• When buying shares of GBTC, you’re paying a premium, which is calculated by the value difference of the holdings versus the holdings’ market price. This calculation can be referred to as the Native Asset Value or NAV.
• Grayscale has two investment types: buying shares directly on the open market, and the other is supplying BTC into the fund, and receiving shares. To invest Bitcoin in the fund, you must be accredited.
• Investors can purchase shares through their traditional investment brokerage accounts and may get tax advantages.
• If Bitcoin goes up, you’ll make more money if you buy the premium at a low. If Bitcoin drops, you will have a more significant loss than merely holding the asset directly.

Have any of you purchased GBTC instead of BTC? If so, why?