If I could sell and then use the proceeds to quickly and easily purchase more BIT shares at NAV then of course but there's nothing quick and easy about it. It's the timing that hurts the most. The extra work of proving I am accredited again would be worth it I suppose. But if I miss a rise while out of BIT shares messing around with this game isn't worth the risk to me. How much can BIT shares (Bitcoin) rise in the couple of weeks or more that it would take to move my proceeds back in? I don't want to miss the big party trying to grab a fast gain.
I understand. If I was doing arbitrage on bitcoin, I would try to set it up so I can buy and sell at the same time. (I didn't realize you were talking about delays between selling and buying.)
Topic: GBTC Bitcoin Investment Trust Observer - page 33. (Read 262371 times)
If the situation were different, i.e. trivially quick and easy, than I'd arbitrage the hell out of GBTC until it was at parity (taking into account the ~0.1 factor) with BTC.
The premium might even increase as demand increases and we don't see COIN launching.
It's in a qualified retirement account, i.e. Roth IRA. I can and have easily obtained Bitcoins from a wide variety of avenues. I have enough non-retirement Bitcoins for now; thank you. To take advantage of the supposed arbitrage opportunity would involve;
1) waiting until my BIT shares actually arrive at my custodian (in-progress; should be soon (next week?))
2) place sell order (hopefully easy & quick)
3) use proceeds to purchase more BIT shares at NAV via my custodian (pain in the butt, prove I am accredited again, medallion signature guarantee, ...)
4) if I want to do it again then wait 12 months and return to step 1
I didn't know it was so cumbersome. I've rarely seen accredited investor processes needing proof of accredited status (you just make the representation), and I've never seen one requiring medallion signature guarantees.
But, those were VC / "friend and family" type investments, so less "public" than BIT. So, maybe they need to be more careful.
Still, you'd think it would be more streamlined if you have already purchased from them. Have you checked they'd make you go through the whole process again?
GBTC price will probably continue to be 50-70% above BTC price for next month (or more?). So I guess buying first and than selling isn't so risky... Or? Not saying it is safe to buy, just want to hear your opinion 
I suppose the GBTC price comes at a premium because the source (people like me) is constrained and the demand (people like you) is less so. I'm unlikely to change my mind soon so if that's common then the source will continue to be constrained *but* what will you and yours be thinking? Are your funds retirement or non-retirement funds? Playing GBTC is just like playing BTC or anything else. That GBTC is loosely anchored to BTC is only mildly interesting? If I could sell and then use the proceeds to quickly and easily purchase more BIT shares at NAV then of course but there's nothing quick and easy about it. It's the timing that hurts the most. The extra work of proving I am accredited again would be worth it I suppose. But if I miss a rise while out of BIT shares messing around with this game isn't worth the risk to me. How much can BIT shares (Bitcoin) rise in the couple of weeks or more that it would take to move my proceeds back in? I don't want to miss the big party trying to grab a fast gain.
I understand. If I was doing arbitrage on bitcoin, I would try to set it up so I can buy and sell at the same time. (I didn't realize you were talking about delays between selling and buying.) 
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle?Are you waiting for an even better arbitrage opportunity?
GBTC price will probably continue to be 50-70% above BTC price for next month (or more?). So I guess buying first and than selling isn't so risky... Or? Not saying it is safe to buy, just want to hear your opinion
Interesting that this GBTC thing is all situated and having a year behind the original shareholders when it appears this market may be turning a new leaf. Coincidence?
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle?Are you waiting for an even better arbitrage opportunity?
Btw, my money would be out of Bitcoin for awhile risking missing out on a rise until I could get back in. I fully understand that I could hedge that with non-retirement funds but then when I close the hedge I'd have a capital transaction to report; nuisance.
New volume record, $300k traded at $50+.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle?I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
Naively, from the outside, it seems like an opportunity to double your coins/money at the cost of filling out a form.
What am I not seeing here?
1) waiting until my BIT shares actually arrive at my custodian (in-progress; should be soon (next week?))
2) place sell order (hopefully easy & quick)
3) use proceeds to purchase more BIT shares at NAV via my custodian (pain in the butt, prove I am accredited again, medallion signature guarantee, ...)
4) if I want to do it again then wait 12 months and return to step 1
New volume record, $300k traded at $50+.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle?I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
Interesting. Do you feel like you lack the requisite knowledge and skills to (easily) re-buy and secure coins from other exchanges? Are there tax reasons?
Naively, from the outside, it seems like an opportunity to double your coins/money at the cost of filling out a form.
What am I not seeing here?
Many people who own this own it via a qualified account, IRA, Roth etc since it was the only opportunity to buy via that vehicle. Same basically goes for GBTC now. No real arb opp if you held BIT in an IRA or similar type of account.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle?Are you waiting for an even better arbitrage opportunity?
New volume record, $300k traded at $50+.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle?I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
Interesting. Do you feel like you lack the requisite knowledge and skills to (easily) re-buy and secure coins from other exchanges? Are there tax reasons?
Naively, from the outside, it seems like an opportunity to double your coins/money at the cost of filling out a form.
What am I not seeing here?
New volume record, $300k traded at $50+.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
It does not seem like much of an opportunity to me. Although the immediate sell price is great right now, the buying path is encumbered by the delay for the accreditation process (again) besides the additional fees, etc. I'm long-minded; do I really need this hassle? I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
New volume record, $300k traded at $50+.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
I thought price would continue to drop as BIT holders began to fear missing out on the arbitrage opportunity.
Nice little jolt of volume today, asks getting more "reasonable", all good. Now if you BIT hodlers can add another digit to that volume this thing will start having some real relevance.
I'm sure most shareholders didn't jump to transfer there shares the first day. I'm sure everyday more shareholders are completing the process.
nice highest volume yet
Yeah, I was already thinking that the volume wouldn't go up anymore anytime soon. But it does now look like GBTC really is back in action. Wouldn't have expected many trades at all. In my opinion this is going very well so far!
Now over 2k on volume! with the rise on the other exchanges it feels like we're sitting on a powder keg!
nice highest volume yet
Yeah, I was already thinking that the volume wouldn't go up anymore anytime soon. But it does now look like GBTC really is back in action. Wouldn't have expected many trades at all. In my opinion this is going very well so far!
Jump to: