Topic: Everything you wanted to know about Grayscale BTC Trust but were afraid to ask! - page 39. (Read 17091 times)

Implementation fee
$0 – $10,000 depending on use-case Custody fee
50 bps annualized
Minimum balance $500,000

When you say it directly, I believe you don't think they keep their BTC in non-custodial wallets - because at least as far as MS is concerned they did all their purchases through Coinbase, and I believe Tesla did the same. If their BTC is in Coinbase Custody cold wallets, I believe that way of storing comes at a price - but it's probably less than what Grayscale charges.

If MicroStrategy and Tesla hold bitcoin directly, I can’t see any reason why an investment fund cannot do the same.

Cathie Wood’s ARK Investment Management increased its holdings of the Grayscale Bitcoin Investment Trust (GBTC) by 2.14 million shares in the fourth quarter of 2020, bringing its holdings of the market-leading institutional bitcoin investment vehicle to 7.31 million shares.

Stop cheering
There is no proof grayscale is really invest anything.
They can Say or show their fake proofs.
I Don't belive it if I Don't see it with my own eyes.

And Where They get so much coins? If they are real?

We live in the World of lias...
Everything is fake Women's tits are fake I dont belive If I Don't see it.

In this world Can't belive anyone.

All of sudden Where this gravescale coming from?
The owners Back ground is unknown
The company just pop up from nowhere..

The website Looking shiet I done websites I make Ten times Better.

They Got so much money but website poor Looking?? 

How Come? 

I was talking to one of the representatives from Grayscale and they were saying that they aim to be the first btc ETF on US exchanges. They also mentioned they would put some sort of way for gbtc holders to transfer over their shares into etf shares. Would make things very interesting if that was the case. I think the SEC would be much more willing to approve a grayscale ETF versus some of the other lesser known companies applying. I have a feeling that they know approval is still unlikely so they and a few of the other big players aren't applying yet. I wouldn't be surprised if they have inside insight from their talks with the SEC.

With the premium pretty much dead at this point I don't think many people will be trading in kind for shares. Hopefully with an etf they will open up physical delivery again so those of us who bought in through brokerages have the chance to pull out if we so desire.

Funny thing here is this post didn’t resonate with me neither.

As I tried to figure out the best possible scenario for which GBTC is offloading their BTC on the market and nothing happens as they flow to a more efficient vehicle.

The only scenario where the price could be heavily impacted is, apart very hypothetical scenario of Bitcoin banning,  is a shift in the very favourable fiscal regime granted to GBTC interactions.

If GBTC get taxed Avery time they sell GBTC shares, something that is not currently happening as per my understanding, well the attractiveness of this vehicle would be greatly reduced.

This would force Grayscale to buy back shares and sell BTC, and cause mayhem on the markets.
Probability of this happening? Very low. If I were Barry Silver I would have been already using my 35 daily BTC to lobby g-men against this (and an ETF approval, of course).

Hey @JJG are we resonating again now? Aren’t we?

What you are describing (or speculating upon) is almost like a BIG so fucking what. 

Ruffer sold part of their investment. They are still invested. Market was happy to absorb these buys, and this is a good news. Not everybody shares the "indefinite hodl" strategy à la Micheal Saylor.
This is a good news because sooner or later we will have to start pondering about the elephant in the room (taking back the discussion in topic).

The real question is: what happens with GBTC selling their BTC?

For now, we never experienced real OUTFLOWS from Grayscale.
If you want to exit from GBTC, Grayscale does not provide a repurchase agreement. So you have to sell your shares in the open market.
For the moment this happens at a hefty premium, so no big issue here.
But what happens when an ETF gets approved in the US?
Probably this ETF will sport a lower fee than grayscale. So investors will start selling their shares in GBTC to switch from GBTC to this new ETF.
Probably grayscale shares will have a discount on the NAV, and arbitrageur would kick in only at a discount sufficient to repay them for the higher commissions than the ETF.
Probably Grayscale would have to reduce the number of shares, selling their bitcoins.
This selling pressure would be countered by the buying pressure from the new ETF (assuming a perfect switch from the two entities the total effects should be negligible). Nevertheless, differences in timing between the two operations could induce greater volatility in the market.

Here's the full quote from Friday's filing by Miller Opportunity Trust (emphasis added):

Grayscale inflow hit the lowest level, Ruffer sold BTC worth as much as $750 million, and Elon Musk removed "Bitcoin" from Twitter bio - I wonder what is the reason that the price of BTC is suddenly rising towards $40k? Just one more in a series of bull traps maybe

Thank,s I think we covered this news here.
Anyway, thanks

Indeed, sounds quite good, even if they slowed a little bit lately, let's see if it is a temporary bump in a smooth ride, or it is something more structural.

The Grayscale 4Q20 report is out.

"Fastest growing investment product in the world"

Q4 2020 Investment Highlights

Total Investment into Grayscale Products: $3.3 billion
Average Weekly Investment – All Products: $250.7 million
Average Weekly Investment – Grayscale® Bitcoin Trust: $217.1 million
Average Weekly Investment – Grayscale® Ethereum Trust: $26.3 million
Average Weekly Investment – Grayscale® Digital Large Cap Fund: $1.6 million
Average Weekly Investment – Grayscale Products ex Bitcoin Trust3: $33.6 million

Majority of investment (93%) came from institutional investors, dominated by asset managers.

Year Ended 2020 (“YE20”) Highlights

Total Investment into Grayscale Products: $5.7 billion
Average Weekly Investment – All Products: $109.8 million
Average Weekly Investment – Grayscale Bitcoin Trust: $90.0 million
Average Weekly Investment – Grayscale Ethereum Trust: $15.2 million
Average Weekly Investment – Grayscale Digital Large Cap Fund: $1.4 million
Average Weekly Investment – Grayscale Products ex Bitcoin Trust5: $19.8 million

Majority of investment (86%) came from institutional investors, dominated by asset managers.

---

The Takeaway
2020 was a hallmark year for Grayscale and digital assets more broadly. Thank you to the community and our investors for making it possible. We are proud to share data that reflects the massive adoption throughout 2020, and specifically, 4Q20.

$3 Billion Dollar Quarter: Grayscale experienced unprecedented investor demand, with approximately $3.3 billion of inflows. Investment into the Grayscale family of products surpassed $5.7 billion during 2020, more than four times the $1.2 billion cumulative inflow into the products from 2013-2019.

Since inception, the Grayscale family of products has seen nearly $6.9 billion of inflows.  

$20 Billion Dollar AUM: Grayscale began the year with $2.0 billion in assets under management and ended 2020 with $20.2 billion. In 2020, Grayscale Bitcoin Trust was among the fastest growing investment products in the world, growing from $1.8 billion to $17.5 billion AUM.11 This is an incredible testament to the maturation of the digital currency ecosystem.

Grayscale Bitcoin Trust Inflows Outpace Mined Bitcoin: As we have noted in prior reports, the inflows into Grayscale Bitcoin Trust have continued to grow as a percent of mined Bitcoin. This metric is significant because miners are known to be the market’s natural sellers, often using their newly mined Bitcoin to pay for operating expenses. In 4Q20, Bitcoin inflows were approximately 194% of mined Bitcoin.

However, these comparisons are simply to illustrate supply and demand in the market. They do not provide insight into the destination of any newly mined Bitcoin during the measured periods.

Institutions are Here: Institutions have historically accounted for a majority of Grayscale inflows. This was especially true in 4Q20 as institutions accounted for 93% of capital inflows, or $3.0 billion. This may not come as a surprise given the recent flurry of news that institutions have warmed up to Bitcoin. Indeed, Grayscale Bitcoin Trust accounted for 87% of all inflows to our product family, the highest proportion since 2Q17, further evidence of institutions looking to Bitcoin as a reserve asset.

The average commitment among institutions is also growing at a significant pace. The average commitment from institutions was $6.8 million, up from an average of $2.9 million in 3Q20.

Surging Demand from RIAs: In 4Q20, Grayscale received substantial inbound interest from wealth managers interested to learn more about Bitcoin to satisfy the growing number of client requests. This is part of an emerging trend of the last six months that is critical for continued adoption.

Wow so basically zero buying for the day haha. Clearly all the recent FUD and the ongoing correction has institutions staying on the sidelines and waiting to see what will happen. They were buying up hundreds of millions of dollars per day just a couple weeks ago haha.

Will be interesting to see if yesterday's pump lasts through the weekend or if it falls back to low $30,000s (as it seems to possibly be doing now). If it can hold some support from the pump though I think we'll see institutional buying pick back up next week. For now though it seems they've bought the dip as much as they wanted to and will be in wait-and-see mode until the market starts moving back up in a stable manner.