What You Should Know About The World’s Largest Bitcoin Fund
Tags: Cryptonote, Bitcoin News, Cryptonews, Grayscale Investments, Grayscale

What You Should Know About The World’s Largest Bitcoin Fund VOREM Jul 6·3 min read

Grayscale Bitcoin Trust is currently the most talked-about bitcoin fund in the entire crypto industry. Since the beginning of institutional adoption, Grayscale has reputedly acquired a large amount of BTC in its fund with an unmatched buying power.

The crypto industry has proposed an era of a financial revolution that large institutions are taking full advantage of. It turns out that Grayscale is one of the public companies racing towards leading a wave of a financial system not centered around an entity.

The Grayscale Bitcoin Trust is more or less a financial platform that enables investors to invest their fortunes in trusts that in turn hodl large amounts of BTCs. As the price of BTC fluctuates due to market volatility, shares in these trusts follow the value of the digital asset. Several benefits are embedded in investing in BTC in this way for investors.

Over time, the Grayscale Bitcoin Trust has posed a novel type of fund mining deep into the value of Bitcoin. Since 2013 when it was initially launched as the Bitcoin Investment Trust, the fund has grown immensely. Currently, the fund gives investors access to BTC private trust that trades directly on the U.S. stock market.

According to analysis and reports as of April 2021, the Grayscale Bitcoin Trust holds over 650,000 Bitcoin. This represents approximately 46% of the total Bitcoin held by publicly traded companies.

Grayscale is a renowned authority on digital currency investing and cryptocurrency asset management and its Bitcoin Trust – GBTC is the largest bitcoin fund in the world.

The GBTC was launched with an orientation towards opening up investment opportunities to as many people as possible. However, there is a way it works.

Grayscale invites a lot of interested wealthy investors to fund the trust with cash. This money is then used to acquire more Bitcoin. Grayscale, after this, places the fund on different public stock exchanges for anyone to buy and sell shares.

The value of the fund tags along with market price fluctuations. This suggests that every investor or anyone initially invited to make contributions to the fund during its first round gets a direct return on reselling their shares.

While price fluctuations might take a while to reflect in prices of the GBTC and the up-front cost which is on the high side, investing in the GBTC comes with its benefits.

There are a number of reasons why one would purchase shares in GBTC rather than buying BTC directly.

It is noteworthy, in this case, that storing Bitcoin securely can be tasking hence, the need for the GBTC for some investors. In addition, filing taxes for gains made on shares — such as those from investing in GBTC — is much less complicated than the tax regime that applies to crypto holdings.

In conclusion, the Grayscale Bitcoin Trust gives investors exposure to the Bitcoin marketplace in a way that streamlines taxes and storage. Although investors need to take funds like GTBC seriously, the average investor is more likely to make only small investments into stock market BTC tracker funds.