GBTC - A good run ends here?
Mis à jour
Not financial advice. Do your own research.
GBTC shares along with Bitcoin have risen quite a bit from October. But as I stated previously, I began to move to cash very slowly to hedge my position (we still don't know how the market will react to the event this week).
This week, the market was not thrilled with Grayscale's listed fees (from 2% now to 1.5% at launch) so GBTC price has not catapulted as you would expect. And to date, Grayscale has not published details about the transition from GBTC shares to ETF, and what that means for holders. Currently there is about a 8% discount which 'almost' covers the gap between share price and BTC held per share.
My fear, completely unfounded, is that there will be a 'settlement' period that will 'freeze' holdings for some period of time. Maybe there will be but only a short period of time. Who knows. Regardless, any unknowns should be concerning. If I were GBTC, I would detail the current plan and offer a dividend for holders on record to keep holders on-board. But that's just me thinking... they can do whatever they want. But as it is right now, Grayscale silence doesn't help.
Therefore what I'm doing right now - and you can do what you want - is to resume my conversion to MSTR for example that might be a better short-term play.
GBTC shares along with Bitcoin have risen quite a bit from October. But as I stated previously, I began to move to cash very slowly to hedge my position (we still don't know how the market will react to the event this week).
This week, the market was not thrilled with Grayscale's listed fees (from 2% now to 1.5% at launch) so GBTC price has not catapulted as you would expect. And to date, Grayscale has not published details about the transition from GBTC shares to ETF, and what that means for holders. Currently there is about a 8% discount which 'almost' covers the gap between share price and BTC held per share.
My fear, completely unfounded, is that there will be a 'settlement' period that will 'freeze' holdings for some period of time. Maybe there will be but only a short period of time. Who knows. Regardless, any unknowns should be concerning. If I were GBTC, I would detail the current plan and offer a dividend for holders on record to keep holders on-board. But that's just me thinking... they can do whatever they want. But as it is right now, Grayscale silence doesn't help.
Therefore what I'm doing right now - and you can do what you want - is to resume my conversion to MSTR for example that might be a better short-term play.
Note
GBTC vs. MSTR also flashes a sell signal.Note
And the inverse view of MSTR vs. GBTC:Note
Bottom line. Hedging by moving out of positions to cash slowly. Slowly picking up MSTR assuming price pumps. We still don't know however which way this will go IMHO. Stay safe out there!
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