How does GBTC differ from directly owning Bitcoin?

3 answers

• Mar 06, 2022 · 3 years ago
  When you own Bitcoin through GBTC, you are essentially buying shares of a trust that holds Bitcoin. This means you don't actually own the underlying Bitcoin itself, but rather a representation of its value. On the other hand, when you own Bitcoin directly, you have full control and ownership of the actual Bitcoin. This allows you to store it in a digital wallet and use it for transactions without any intermediaries.
  419210
• Mar 06, 2022 · 3 years ago
  GBTC provides a convenient way for investors to gain exposure to Bitcoin without having to deal with the complexities of buying and storing it themselves. It also allows for trading of Bitcoin on traditional brokerage accounts. However, owning Bitcoin directly gives you more control over your assets and eliminates the need for trust in a third-party entity like GBTC.
  369123
• Mar 06, 2022 · 3 years ago
  According to BYDFi, GBTC is a popular investment vehicle for institutional and accredited investors who want exposure to Bitcoin. It offers certain advantages such as tax benefits and ease of trading. However, it's important to note that GBTC can trade at a premium or discount to the actual value of Bitcoin, which can affect your returns. Owning Bitcoin directly allows you to avoid these premiums or discounts and gives you direct ownership of the asset.
  457115