What are the risks of investing in GBTC?

GBTC makes it easy for risk-conscious investors to profit from price shifts. One very evident disadvantage of investing in GBTC instead of directly investing in BTC is that shares in the trust come with a significantly high up-front cost.

What are the benefits of investing in GBTC?

GBTC offers investors an easy way to gain Bitcoin exposure without the time and effort of storing and safekeeping it. Just as with any other retail investment, investors may quickly and easily buy and sell shares of GBTC versus the time it may require to manage Bitcoin directly.

How much has the GBTC trust declined this year?

The $11.4 billion Grayscale Bitcoin Trust (ticker GBTC) has plunged more than 74% this year, outpacing the cryptocurrency’s 64% decline. That gap has widened dramatically over the past week, dragging the price of GBTC to an unprecedented 42% discount to the value of the Bitcoin it holds, according to Bloomberg data.

What is the GBTC discount to NAV?

The Grayscale Bitcoin Trust (GBTC) is currently trading at a discount of 41.69% from its net asset value (NAV). FTX's collapse caused the second contagion of the year following 3AC and LUNA's downfall in Q2.