The Grayscale Bitcoin Trust (GBTC) has gained a staggering 63% in value in only 6 weeks since the start of Q4.
Today the value of GBTC is $17.96, up from $11 ion 1 October, 2020, as the institutional grade investment fund continues to accumulate BTC.
According to Grayscale’s announcement on Twitter at close on Friday 13, November, The Bitcoin fund is now worth $8.239 billion. Meaning Grayscale now owns over 506,000 BTC – about 2.78% of Bitcoin’s circulating supply.
What is Grayscale Bitcoin Trust (GBTC)?
GBTC trades on the Toronto Stock Exchange, and is the biggest BTC only investment fund.
The fund enables investors to gain exposure to Bitcoin in the form of a security, without having to worry about self-custodying BTC. As well as this, it also allows investors a way to get around the regulatory problems some come up against with Bitcoin.
There are 531,616,100 GBTC shares and each share represents BTC 0.00095262, which at today’s BTC to USD price is worth $15.46, so investors in GBTC do pay a slight premium. There’s also a 2% annual fee.
Grayscale has been aggressively buying Bitcoin this year as it looks to grow its AUM. Grayscale CEO Barry Silbert “warned” the Bitcoin community back in Q2 to look out for Grayscale’s aggressive buying, and the BTC fund has lived up to its promise. Read More