With a bid of $31.50 as compared to the closing yesterday of $23.70 we should sell short (effectively covered) and then close the short position as quickly as possible when BIT shares are transferred into the ETF. Free money.
A little out of the loop in the whole small cap world.. Will most brokers allow you to sell short? Don't they have to actually have shares available to borrow? IE: no naked shenanigans ?
Topic: GBTC Bitcoin Investment Trust Observer - page 53. (Read 262371 times)
All the bids have the qualifier "u" after the market maker name, which means "unsolicited" customer indication of interest. I think this means it is not the market maker who is bidding as part of market maker activities, but it is one of their customers making the bid.
The asks are marked "u" which apparantly means an "unpriced indication of interest."
So there are retail customers playing around with high prices to see if someone bites, but it could also be there are brokers who do have shares to sell they are seeking quotes on. Its not clear to me if they have to have the shares available in order to list the as as "unpriced indication of interest."
http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=4514&print=1
The asks are marked "u" which apparantly means an "unpriced indication of interest."
So there are retail customers playing around with high prices to see if someone bites, but it could also be there are brokers who do have shares to sell they are seeking quotes on. Its not clear to me if they have to have the shares available in order to list the as as "unpriced indication of interest."
http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=4514&print=1
I think the $199.5 bid at 1 just proved my point, or its someone who doesn't realize the fund is 1/10 of bitcoin!
And note the only broker without the "u" after their name is Merriman, which is the advisor for the fund.
If I understand correctly the above file (from page 31 onwards), the BIT fund will no longer sell or redeem shares for dollars, only for bitcoins. That is, a broker gives 10 BTC to BIT, gets 100 BIT shares; or the reverse.
I think you're correct. Although at that time (and probably still now) the only broker acting to create shares in Bitcoin Investment Trust would have been SecondMarket. (Remember that legally, BIT and SecondMarket are separate entities.) Over time other brokers may get involved, so perhaps in future not all new money will have to flow through SecondMarket.
roy
All the bids have the qualifier "u" after the market maker name, which means "unsolicited" customer indication of interest. I think this means it is not the market maker who is bidding as part of market maker activities, but it is one of their customers making the bid.
The asks are marked "u" which apparantly means an "unpriced indication of interest."
So there are retail customers playing around with high prices to see if someone bites, but it could also be there are brokers who do have shares to sell they are seeking quotes on. Its not clear to me if they have to have the shares available in order to list the as as "unpriced indication of interest."
http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=4514&print=1
The asks are marked "u" which apparantly means an "unpriced indication of interest."
So there are retail customers playing around with high prices to see if someone bites, but it could also be there are brokers who do have shares to sell they are seeking quotes on. Its not clear to me if they have to have the shares available in order to list the as as "unpriced indication of interest."
http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=4514&print=1
With a bid of $31.50 as compared to the closing yesterday of $23.70 we should sell short (effectively covered) and then close the short position as quickly as possible when BIT shares are transferred into the ETF. Free money.
A little out of the loop in the whole small cap world.. Will most brokers allow you to sell short? Don't they have to actually have shares available to borrow? IE: no naked shenanigans ?
Top bid is now $50, from KCG
With a bid of $31.50 as compared to the closing yesterday of $23.70 we should sell short (effectively covered) and then close the short position as quickly as possible when BIT shares are transferred into the ETF. Free money.
People might also not have there shares to sell yet.
Investor Letter – March 26, 2015 [email protected]
OTCQX® Update
We are pleased to announce that the Bitcoin Investment Trust (BIT) has been approved by OTC Markets for eligible BIT shares to be quoted on OTCQX®, the top marketplace operated by OTC Markets Group, under the Alternative Reporting Standards. For information on transferring your shares to your brokerage account, please review the material under “Steps to Sell Shares…”
As a reminder, it is important to note the price of shares traded on OTCQX® will be established by market bids and asks and will not necessarily reflect the BIT’s NAV/share or the spot price of bitcoin. In addition, no assurances can be given as to whether an active public secondary market for the shares will develop or be maintained.
As always, qualified accredited investors may choose to invest in shares of the BIT directly through the BIT’s ongoing private placement at the daily NAV/share1. Please note that BIT shares purchased through the ongoing private placement are subject to significant resale and transferability limitations and will not be eligible to be sold on OTCQX® until held for more than one year. BIT shares purchased on OTCQX®, however, are freely tradable once purchased.
Steps to Sell Shares on OTCQX®
Investors who have held BIT shares for at least 12 months will be eligible to sell those shares on
OTCQX®.
Shareholders should have their shares transferred electronically to their brokerage account as follows.
- Our transfer agent, Continental Stock Transfer & Trust, will be providing each eligible shareholder a share ownership statement. You will receive an e-mail from us in the coming days with a copy of this statement.
- The statement will include the details necessary to have your shares electronically transferred via Direct Registration System (DRS) to the broker of your choice. Details may slightly vary by brokerage firm, so we encourage you to reach out to your broker to complete the transfer.
- Once your shares have been transferred to your brokerage account, you will be able to place an order to sell your shares.
- Shareholders may continue to hold their shares in DRS book-entry form with Continental if you so choose.
- If you have any questions regarding your share ownership statement, if your address has recently changed, or if you have any other questions at this time regarding transferring your shares to your own brokerage account, please contact Continental at (800) 509-5586 or (212) 509-4000.
As always, please do not hesitate to contact us with any questions or concerns about this process.
To the extent that you do not already have a brokerage account and would like to establish one, we can put you in contact with Merriman Capital, the broker dealer that is both the BIT’s initial market maker and its Designated Advisor for Disclosure (DAD).
Should you have any questions or comments regarding this information, please feel free to contact us at [email protected] or 212-668-6682.
1 The BIT’s NAV/share will be published each U.S. business day on the sponsor’s website: www.grayscale.co
If I understand there won't really be any "new" money coming into bitcoin. The only way I can buy shares is if somebody in the trust is willing to sell. The trust won't be buying new bitcoins like the winklevoss thing.
As always, qualified accredited investors may choose to invest in shares of the BIT directly through the BIT's ongoing private placement at the daily NAV/share1.
It really just seems like a way for early trust investors to dump there shares.
If I understand there won't really be any "new" money coming into bitcoin. The only way I can buy shares is if somebody in the trust is willing to sell. The trust won't be buying new bitcoins like the winklevoss thing.
As always, qualified accredited investors may choose to invest in shares of the BIT directly through the BIT's ongoing private placement at the daily NAV/share1.
If I understand there won't really be any "new" money coming into bitcoin. The only way I can buy shares is if somebody in the trust is willing to sell. The trust won't be buying new bitcoins like the winklevoss thing.
As always, qualified accredited investors may choose to invest in shares of the BIT directly through the BIT's ongoing private placement at the daily NAV/share1.
But in that case they would have to wait one year until being able to sell those new BIT shares.
If I understand there won't really be any "new" money coming into bitcoin. The only way I can buy shares is if somebody in the trust is willing to sell. The trust won't be buying new bitcoins like the winklevoss thing.
As always, qualified accredited investors may choose to invest in shares of the BIT directly through the BIT's ongoing private placement at the daily NAV/share1.
If I understand there won't really be any "new" money coming into bitcoin. The only way I can buy shares is if somebody in the trust is willing to sell. The trust won't be buying new bitcoins like the winklevoss thing.
If I understand correctly the above file (from page 31 onwards), the BIT fund will no longer sell or redeem shares for dollars, only for bitcoins. That is, a broker gives 10 BTC to BIT, gets 100 BIT shares; or the reverse.
Thus the buying and selling of bitcoins for dollars will be done by the brokers or final investors.
BIT will be basically a safekeeper of the BTC, and will not buy or sell bitcoins by itself (except the BTC collected as fees, presumably).
Is this correct?
Note from page 51:
(bolding as in the original)
Thus the buying and selling of bitcoins for dollars will be done by the brokers or final investors.
BIT will be basically a safekeeper of the BTC, and will not buy or sell bitcoins by itself (except the BTC collected as fees, presumably).
Is this correct?
Note from page 51:
Quote
The Shareholders’ limited rights of legal recourse against the Trust, the Trustee and the Sponsor and the Trust’s lack of insurance protection expose the Trust and its Shareholders to the risk of loss of the Trust’s bitcoins for which no person is liable.
The Trust will not insure its bitcoins. Further, Shareholders’ recourse against the Trust, the Trustee and the Sponsor is limited. Consequently, a loss may be suffered with respect to the Trust’s bitcoins that is not covered by insurance and for which no entity or person is liable in damages.
The Trust may not have adequate sources of recovery if its bitcoins are lost, stolen or destroyed.
If the Trust’s bitcoins are lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial resources sufficient to satisfy the Trust’s claim.
The Trust will not insure its bitcoins. Further, Shareholders’ recourse against the Trust, the Trustee and the Sponsor is limited. Consequently, a loss may be suffered with respect to the Trust’s bitcoins that is not covered by insurance and for which no entity or person is liable in damages.
The Trust may not have adequate sources of recovery if its bitcoins are lost, stolen or destroyed.
If the Trust’s bitcoins are lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial resources sufficient to satisfy the Trust’s claim.
(bolding as in the original)
Bitcoin, land of the hype.
Yes.Hype around Coinbase because $75M from NYSE. Institutional investors from Wall Street they said. Better liquidity they said. Better regulated they said.
Today? Nobody cares about Coinbase.
Hype around Second Market. Same mantras.
Today? This pink sheets stuff.
Hype around Noble Market? Same thing all over again.
Bitcoin: hype & smokescreen, as always.
Keep us updated with this tho, very good job so far.
No asks yet? Will be interesting to see how much sellers will be at those prices... 80% of them bought at much higher prices.
So they hold 135737 btc at the moment (if I calculated right). Will they add more btc to their holdings to increase liquidity? Can new investors still buy new shares and not only those from old investors?
Would be great to have Barry here
So they hold 135737 btc at the moment (if I calculated right). Will they add more btc to their holdings to increase liquidity? Can new investors still buy new shares and not only those from old investors?
Would be great to have Barry here
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