Trading Grayscale Bitcoin Trust When Bitcoin Never Sleeps – Grayscale Bitcoin Trust (BTC…

Source: bitcoinist

I’ve done a lot of trading with Grayscale Bitcoin Trust (GBTC) over the last couple of years and discovered it takes a different way of thinking to successfully generate some serious returns from the stock.

In this article, we’ll look at some of the unique features associated with bitcoin that have an impact on how to look at GBTC and trade it.

What Grayscale Bitcoin Trust does

The stated purpose of Grayscale Bitcoin Trust is “for the NAV per Share to track the Bitcoin Market Price per Share, less the Trust’s liabilities.”

How the share price of the fund moves up or down is in accordance with the price movement of bitcoin. That, of course, includes a lot of volatility.

My view is you either hold GBTC for the long term, depending upon whether or not you believe it’s going to soar in the future, or you take a piece of the upward or downward movement to make short-term gains on either side of the trade.

Where GBTC and Bitcoin stand now

Bitcoin has been on a tear…