By Thom Lachenmann
There are only a limited number of ways to get exposure to Bitcoin on the public markets right now. Until the Winklevoss twins are able to launch their COIN exchange traded fund, options are limited for investors who want access to Bitcoin.
One of those methods to gain exposure to Bitcoin is to buy Greyscale Bitcoin Investment Trust (OTCQX:GBTC). GBTC “is a private, open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of Bitcoin. It enables investors to gain exposure to the price movement of bitcoin without the challenge of buying, storing, and safekeeping Bitcoins. The BIT’s sponsor is Grayscale Investments, a wholly-owned subsidiary of Digital Currency Group.”
One GBTC share is about 0.094 Bitcoin right now.
But the problem with buying GBTC is that because it is one of the only ways to get exposure to Bitcoin on the public market, it is priced at a premium to NAV. Right now, at $93, it trades at a premium to NAV.
If you take 161,784