Guys,
I'm beginning to have second thoughts about investing in GBTC.
Consider this scenario:
Grayscale never converts GBTC to an ETF, never adds a process for bitcoin redemption, and keeps its massive 2% fee. They make noises about hiring ETF expertise, looking at ETF conversion when the SEC allows it, and looking into someway for bitcoin redemption, but in the end they don't have to do any of that. The bitcoins are locked in the trust, and Grayscale can just sit and eat 2% per annum.
This will imply the negative premium will be permanent. No new institution will put money or bitcoin into GBTC. People would not buy GBTC on the secondary market except at steep discount. This $250 million share repurchase will probably not do anything to reduce the discount.
Mhhh implausible scenario.
Ok, everything you say has a logical meaning and could probably become true. But the question is: why?
Why should Grayscale kill their own goose that lays golden eggs?
They have been running their business since a few years ago: they know what they are doing, and they simply won't let it slips out of their hands.
They are I think they are actively bribing the G-men to delay as long as possible the EFT approval so that they can be running their high fees business for longer before they will convert their GBTC trust.