Does anyone know if you can use GBTC as collateral for collateral stock lending from a place like td ameritrade? They offer loans pretty cheaply at libor + a percentage, as low as libor +1.5% if you take a larger loan (3mm+).
Going to contact them next week and see. Might be a decent move to put a little money in there if I can take loans against it (in a cheap way), a couple years down the line.
Going to contact them next week and see. Might be a decent move to put a little money in there if I can take loans against it (in a cheap way), a couple years down the line.
It doesn't look a great idea to me: do you really want to buy bitcoin with a 20% premium only to have a cheaper loan?
I am not sure about your fiscal and regulatory framework, but I guess the saving you can have on the loan side of the deal is minuscole compared to the premium you are going to pay on the "grayscale secondary buying" leg.
A completely different consideration would have been made if you were an accredited investors with some restricted GBTC shares. There could be a good deal.
So Grayscale buys bitcoin in behalf of its clients, most of them must be institutional investors or companies, otherwise they could've bought bitcoin themselves, why having some intermediary.
As I said in the OP, there are a large numbers of subject that cannot hold BTC on the first place. For them the only way to get exposure to BTC is getting trough Grayscale or similar products.
