This is a really great way to determine at a quick glance if the premium is over charged, and would also help looking at getting if the premium is excessively overcharged. Can you update this with the new split?
FreedomHouse
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The premium can go below 0? I thought 0 was the lowest it could go.
kkapdolee
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where can you find out the total number of BTC holdings GBTC has? Does this number fluctuate? If so, do you periodically change your constant 0.93?
youngmoneychris
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@kkapdolee, GBTC has 0.00100567 BTC per share. They have 180,674,800 shares outstanding.
kkapdolee
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@youngmoneychris, thanks. Where did you get this information? I tried to find it but couldn't. Also, doesn't their number of shares outstanding fluctuate over time?
I think you need to consider that GBTC is pretty much the only game in town for retirement funds and for people who want to be in bitcoin but don't want to mess with exchanges, wallets, etc. I resisted buying for a long time due to high premiums until I had that realization. I bought a few weeks ago with the premium at 80% and have made a 30% gain since. I'm expecting more as BTC runs to $5-7k in the next weeks. GBTC could get to the $1500-2k in short order.
GBTC opportunities to trade at par will be few and far between. The thing to watch for is new ETFs or other funds that will finally give GBTC some competition in the conventional investment space.
aramis720
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@Digitalifetime, I agree and I'm curious if you've thought about a day trading option where you buy or sell GBTC based on the BTC price fluctuations the day before. So as the market for GBTC opens you trade accordingly. The swings are bigger for GBTC but they seem to be highly correlated with BTC swings.
Digitalifetime
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@aramis720, Sorry, missed this comment. I'm not a good day trader so I don't look at those possibilities often. Recent action in GBTC (GBTC falling while BTC is rising) caught me by surprise but I should have expected it. The correlation that has always been there was broken. Appears GBTC was attacked by shorts or naked shorts. Clearly demonstrates the value of BTC and blockchain even more. Looks like those shorts are caught on the bad side and the exit should create a nice pop. GBTC will be a great hold as long as it's the main game for retirement accounts.