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The Grayscale Bitcoin Investment Trust – A Beginners Guide – Bitcoin Investment Trust (O…

14 Aug The Grayscale Bitcoin Investment Trust – A Beginners Guide – Bitcoin Investment Trust (O…

Posted at 02:24h in Bitcoin News by

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Introduction

This article is a very high level introduction to the Grayscale Bitcoin Investment Trust (OTCQX:GBTC). If you are unsure about what Bitcoin (BTC-USD) is, then you can start by reading some of my articles on the subject. Alternatively, if you’re a visual learner there are many great videos that can get you up to a basic level of understanding. Let’s begin.

A brief history lesson

In mid 2017, investors were all hot and bothered by Bitcoin. Many were looking for ways to get exposure through more traditional routes, like their brokerage account or retirement plan. One of the few ways to achieve this, was through the Grayscale Bitcoin Investment Trust. The trust was actually established in 2013, but there wasn’t much talk about it until just last year.

gbtc interest 2013 to 2017Image Source: Google Trends

Here’s how it works.

The trust holds actual Bitcoin, and has a discrete number of shares issued. Each of these shares represent a certain amount of Bitcoin. From their website:

gbtc btc per shareImage Source:

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