Topic: GBTC Bitcoin Investment Trust Observer - page 41. (Read 262371 times)

As I understand it SecondMarket will not resume redemptions; they only way out is via the OTC; trying to arbitrage with a 12 month cycle would very likely be ineffective.

Since I am truly long-minded, if when I truly have liquidity then I might sell some BIT via the OTC:GBTC and reinvest it at NAV through SecondMarket.

I don't think you can get much more efficient than that.

The GBTC shares are en route to the brokerage accounts now. Currently, they are being carried from Grand Central Station in Manhattan to Chinatown on the back of a large tortoise. In Chinatown, the shares will be handed off to a team of sloths who will convey the shares across the Brooklyn Bridge where a manatee is waiting next to the promenade. The shares will be encased in a waterproof binder and attached  to the manatee who will then slowly swim to Dublin, Ireland. There, the shares will be electronically transferred to the brokerage accounts.

Redemptions too used to have an N month maturation period (originally 6, extended to 12?) before they dould be redeemed. Isn't that going to be the case still?

They could sell on OTC and buy again directly from Secondmarket as accredited investors.  Only thing they would lose is the ability to sell on OTC for another year.  Even that is not so bad, since presumably Secondmarket will unsuspend redemptions at some point.

Cyclops ?

yes of course there is a reason. nevertheless it depends solely on the BID. if the bid is high enough and the difference therefore big enough sellers will come.

i expect them to ask 400. and i expect those 400 will be paid.

Yeah, that's what some of them just might do, actually. But I guess there's a reason why they invested in GBTC shares, rather than buying the coins directly: They like the type of investment vehicle, with all its disadvantages and advantages. And that's the very reason they may just stay in that vehicle!

they could sell and buy instead at coinbase etc. that would 100BTC->150BTC

I guess many people holding shares there may not be willing to sell at current spot prices, because they mostly (if not all) bought at higher prices. If you want to trade price swings, you're better of using one of the regular exchanges!

http://bravenewcoin.com/news/bitcoin-investment-trust-prepares-for-trading/

It will be interesting to see if it does give the market a boost or not.
I know they are buying way way above market rate, but whether the market catches up with their price, or their price falls down to the market price will be the next important piece of information for us after it goes live.

I think there might be a meeting in the middle, with about $290-300 being re-tested.

Make it happen Barry and I'm not talking about Barrack O. At some point soon this SM has to give us a boost.

Shareholders probly arnt making transfering those shares a top priority. 

Nice catch.


Yep. At the speed of paper... tomorrow is the first day I see as really possible, but not probable.

Yes, on some monday gbtc will trade .... recloses the one open eye.

There's an update. What Barry meant was that GBTC could start trading today or tomorrow, not "should."

https://twitter.com/InsideBitcoins/status/593566295658000384

I'm going to trust what the accredited investor guy in this thread says when he estimates 5+ business days, not Barry shooting his mouth off. That means we should expect trading on Monday or later.

I like how bears have to talk smack about good news, as bad news has been a little light lately.

I have my doubts about COIN ever getting past the watchers of the SEC gate. Winklevii strategy keeps being: if this, then that, if that... With the first step being reliant on a bitlicense. I wish them the best, and they certainly have the money to hire the right people, but I don't consider them a factor so far (other than that 1% stake).

Barry on the other hand, seems to know exactly what he's doing. The 12 month lockout is the loophole he used to get a pink sheet listing on the trust. And now "Authorized Participants" will be interacting with the market in actual bitcoins, to arbitrage out the difference in values between the shares and the asset. He "rebranded" his trading/broker-dealer crew into Genesis Trading, not sure what to expect from that at this point.

The swedish ETN came out of left field to me. Connected to the friendly KnC aircraft hangar crew? I guess there's some sense in that for them. Hard to call it bad news. Nice precedent set when it included a green light from Finansinspektionen, the swedish financial regulator. Nasdaq Nordic serves markets in Helsinki, Copenhagen, Stockholm, Iceland, Riga, Tallinn and Vilnius.

There will probably be a chance to short on an overreaction to GBTC kicking off, but the thought being net short right now is terrifying to me.    

That's a bad bet. Since you said "never", if someone takes the bet the only possible outcome is no one wins or you losing. You should put a deadline, like you will not see the winki ETF in the next 2 years or whatever that way you actually give yourself a possibility of winning.

Well, how are they supposed to trade if the transfer of the shares hasn't even been completed!? You can't really go and blame that on GBTC, at best you can blame the old financial systems everyone here is complaining about!