What is grayscale Bitcoin Trust?

Grayscale is the largest digital currency asset manager. Investors can buy and sell Grayscale Bitcoin Trust shares, each of which roughly tracks the price of bitcoin. In other words, Grayscale owns a significant portion of the BTC supply, and we explain the effect it has on the market.

Does grayscale own GBTC?

Grayscale operates the Grayscale Bitcoin Trust (GBTC), which has $10 billion-plus in assets under management. Digital Currency Group (DCG) has started selling holdings in several investment vehicles run by its subsidiary and digital assets manager Grayscale at a steep discount, according to a Financial Times report citing U.S. securities filings.

Is grayscale a good investment?

Mirroring the mass of Grayscale, the company owns 3,117 percent of all bitcoin units (BTC) in circulation, holding 654,600 bitcoins in its reserves ( at the time of writing ). This amount of bitcoin reserves potentially grants great power to the company. Besides, it increases the centralized risk profile or single point of failure.

Does grayscale save bitcoin reserves in gold storage?

Grayscale saves its bitcoin reserves in gold storage to minimize risks. It’s safe to say that Grayscale and the Grayscale Bitcoin Trust (GBTC) have a notable effect on digital asset markets. People see GBCT as a leading indicator of the market, so the Grayscale Trust’s main use is for arbitrage trades.