GalaxyGlider
Sat Sep 07 2024
|
7 answers
1781
Is the greyscale Bitcoin Trust an ETF?
Excuse me, could you please clarify if the Greyscale Bitcoin Trust should be considered as an Exchange Traded Fund (ETF)? I'm a bit confused since I've heard conflicting information about its classification. Some sources state that it behaves similarly to an ETF, while others argue that it doesn't fully meet the criteria. Could you elaborate on this point and provide any additional insights or nuances that might help me understand its nature better? Thank you in advance for your time and expertise.
Margherita
Thu Jul 11 2024
|
7 answers
1481
How does the greyscale Bitcoin Trust work?
Inquiring minds may wonder: "How precisely does the Grayscale Bitcoin Trust operate? Firstly, could you elaborate on the mechanism behind its functioning? Does it involve a pooling of funds from a select group of investors, followed by the purchase of Bitcoin with those funds? And after such an acquisition, is the trust then listed on a public securities exchange, allowing for trading of its shares? Further, how closely do the share prices of this trust track the underlying value of Bitcoin? Are there instances where the share prices exceed or fall short of the actual Bitcoin price? I'm curious to understand the intricacies of this financial instrument and how it provides investors with an alternative route to invest in Bitcoin.
