2024-05-07 09:58:34 ET
Summary
- Grayscale Bitcoin Trust transitioned from a close-ended fund to an open-ended fund, eliminating discounts and benefiting investors.
- The shift to an open-ended structure allows for in-kind redemptions, aligns trading price with net asset value, and improves tax efficiency.
- Inflows have resumed for GBTC, indicating reduced selling pressure and potential price stabilization for Bitcoin as a whole.
Investment Thesis
In recent months, Grayscale Bitcoin Trust (GBTC), has experienced restructuring, which, I believe, will be very beneficial for investors both in Bitcoin and in GBTC in the long run. In February, GBTC transitioned from a close-ended fund to an open-ended fund. As a close ended fund, GBTC faced larger tax bills, thus forcing their shares to trade at a discounted rate relative to the net asset value (NAV) based on the Bitcoin held. By selling their shares at a discounted rate, investors were not receiving the same level of returns they had come to expect with a Bitcoin investment....
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GBTC: The Bleed Is Ending