Grayscale has been buying up insane amounts of Bitcoin OTC (or technically not buying, but they accumulated a lot from miners or so... so you get the point), and that did not affect the price at all. So the question is how are they selling it in the future? I believe that there isn't going to be another Grayscale to buy all of their BTC over the upcoming months (which must happen OTC aswell to avoid price drops), forcing them to sell all of their coin on the open market which will lead to huge overselling and huge price drops. The price drops will happen over a certain period of time, since Grayscale accumulated their BTC over time. I think this is very possible because the people that hold GBTC are not the same guys that are "hodlers" and will cash out as soon as the opportunity is there.
https://preview.redd.it/vs9skcucdep51.jpg?width=960&format=pjpg&auto=webp&s=ef2a99d9a6e5aa67bd68294cc0fff429bd9dde08 Institutional investors typically have strict requirements in terms of risk management and compliance with applicable securities laws and regulations. They usually allocate only a small part of their investment portfolio to new asset classes such as Bitcoin, primarily with the purpose of investment portfolio diversification. Currently, institutions can either buy Bitcoin directly or get indirect exposure through available Bitcoin investment products. Institutional investors typically have direct exposure to Bitcoin using cryptocurrency exchanges and OTC trading desks.
Institutional Exposure to Bitcoin
https://preview.redd.it/n790vo6fdep51.jpg?width=960&format=pjpg&auto=webp&s=0f16172602bedf1446071516277f9dab9e48139a Many institutional investors still do not have exposure to Bitcoin because of the regulatory uncertainty, lack of reliable valuation models, and high market risks. At the same time, institutions are interested in allocating capital to Bitcoin because it’s not highly correlated with traditional asset classes and has generated outstanding historical return. Institutional investors typically do not have in-house expertise in the Bitcoin market and prefer to have indirect exposure to Bitcoin using currently available investment products, such as Grayscale Bitcoin Trust (GBTC) and crypto hedge funds.
Institutional Demand for Bitcoin
https://preview.redd.it/5s4ry32idep51.png?width=673&format=png&auto=webp&s=9c8885104377d9ed4f79a12b0f67efe1f292e6a8 Genesis, one of the largest Bitcoin lender and OTC liquidity provider, has issued Q2 2020 report where crypto market trends are discussed. Based on this report, the institutional demand and participation in the crypto space is growing substantially. Here is Genesis’s statistics for Quarter 2 2020: $2.2B in crypto loans has been originated. For comparison, this is a 324% increase in loan originations from the same quarter last year. Genesis had $1.42B total active crypto loans as of June 2020. $5.25B of spot volume has been traded through their OTC desk. $400M derivatives volume traded since June 1, 2020.
Conservative Investors Allocate Capital to Bitcoin
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Over the past 100 days, Grayscale has bought every third bitcoin
Over the past 100 days, Grayscale has bought every third bitcoin The Grayscale Investments cryptocurrency investment fund acquired every third bitcoin mined in the last 100 days. And in April, the fund bought 50% of all ETH mined. At the same time, despite the financial crisis and the fall of the cryptocurrency market in March, shares of Grayscale crypto funds in the first quarter of 2020 attracted record investments, which indicates a growing interest of institutional investors in the crypto industry. Why does the company need so many coins, what is its current position regarding the crypto market and what role does it play on it?
Aggressive Grayscale crypto purchases have recently been spotted with respect to ether. So, by April 24, the company had bought about 756 539 ETNs (accurate data are not publicly available) for its Ethereum Trust fund. This is about 48.4% of all 1.5 million coins mined since the beginning of this year. As a result, the company already owns 1% of all coins in circulation and only increases the pace of purchases. The first user to notice this was Reddit under the nickname u/nootropicat. According to the latest quarterly report by Grayscale, the flow of investments in ETN reached a record level for the first three months of 2020 — $110 million. This is a very sharp increase, given that total investments in ETN for the previous two years amounted to $95.8 million. The total demand for the Ethereum fund grew over the quarter is almost 2.5 times compared with the fourth quarter of 2019. From the beginning of the year until the end of April, the company issued 5.23 million shares of the fund at 0.09427052 ETN apiece. At the same time, shares are traded with a premium of 420% relative to the current price of the coin — $92 against $17.70. That is, investors are willing to pay extra pretty much not to deal with cryptocurrency on their own. Most likely, the increase in the rate of purchase of the coin is associated with the upcoming upgrade of the network to the state of Ethereum 2.0. It can take place at the end of July, but, most likely, it will happen not earlier than the end of the year. After the upgrade, the network will become more scalable and there will be the possibility of staking — validators will be able to receive passive income for providing their funds to confirm the blocks. The crypto market, by the way, is also preparing for the transition of the ecosystem to a new stage. ETH has grown 55% since the crash in March, from $110 to $202 on the day of publication. At the end of April, CoinDesk drew attention to the increase in the number of long positions in ETH futures — this indicates expectations for further growth of the coin.
Last quarter — the most successful in the history of the company
In May, Grayscale released a report on the results of the first quarter of this year. “Despite the decline in risky assets this quarter, Grayscale’s assets continue to approach record highs, as does our share of the digital asset market,” the document says. And this despite the coronavirus pandemic, the global recession and the traditional cryptocurrency market volatility. A record $503.7 million investment was raised in the first quarter. This is almost twice the previous quarterly maximum of $254 million in the third quarter of last year and accounts for 83% of the total capital of $1.07 billion raised for the entire 2019. New investors accounted for $160 million of raised funds. The main products of Grayscale Bitcoin Trust and Grayscale Ethereum Trust raised $388.9 million and $110 million, respectively. It is noteworthy that the company reduced the premium on stocks of funds relative to the price of assets. 88% of investments came from institutional investors, among which hedge funds prevail; 5% — from accredited individuals, 4% — from pension accounts (yes, pension funds are extremely conservative in nature, but also invest in bitcoin against the background of a decrease in the profitability of other assets); 3% came from family offices, and 38% of customers invested in several products at once. It is noteworthy that two years ago the share of institutional investors was about 50% — it is obvious that they no longer consider bitcoin as something criminal. “Many of our investors see digital assets as medium and long-term investment opportunities and the main component of their investment portfolios. Quarterly inflows doubled to $ 503.7 million, demonstrating that demand is reaching new peak levels even in conditions of “risk reduction”, the document says. Today, more than 46.5% of the inflow of funds was attracted from multi-strategic investors. Crypto investors accounted for only 11.2% of the inflow, according to the report. Grayscale currently operates ten cryptocurrency investment products targeted at institutional investors. They cover PTS, ETN, ETS, BCH, ZEC, XRP, LTC, ZEN, XLM. The value of the assets under his management is more than $3.8 billion. GBTC is the most demanded product, most investors invest in it and it takes about 1.7% of the total volume of circulating bitcoins. Aggregate quarterly flow of funds to different Grayscale products. Pay attention to the growing share of investors diversifying portfolios with products tied to altcoins. Since January of this year, the Grayscale Bitcoin Trust has been registered with the US Securities and Exchange Commission (SEC). According to it, the company provides quarterly and annual reports in the form of 10-K. The status makes it possible to sell shares of a trust in the secondary market after 6 months, rather than 12, as before, and also increases the confidence of conservative investors. Other products comply with OTCQX reporting standards in the OTC market and are approved by the US Financial Services Regulatory Authority (FINRA) for public offering. Amount of assets managed by Grayscale as of May 20, 2020. It is noteworthy that the news about the success of Grayscale comes amid news of how panicky investors in traditional assets are fleeing from market turmoil. So, the largest fund managers — BlackRock, Vanguard and State Street Global Advisors — lost several trillion in capitalization of their assets, and BlackRock in the first quarter for the first time in five years saw a net outflow of funds from its long-term investment products.
Bitcoin is the best asset for hedging portfolios in crisis
At the end of April, Grayscale also released a separate report on the analysis of the impact of regulators during a pandemic and the crisis caused by it and how it affected the bitcoin and cryptocurrency market as a whole. The document said fiat currencies are at risk of devaluation as central banks print more and more money. Even the US dollar, which is the world’s reserve currency, risks being devalued if the US Federal Reserve continues to print the currency in trillions. A decrease in interest rates to zero and negative values deprives government bonds of the status of “safe haven” during the crisis. Therefore, investors are trying to diversify their portfolios with alternative instruments. Cryptocurrencies are the best choice for this, according to the authors of the report. The text emphasizes the historical significance of gold as a global standard, but it is noted that in the modern digital world it is becoming increasingly burdensome for investors — it has complex logistics. Bitcoin seems resistant to the problems that other assets face. Therefore, in times of economic uncertainty, the first cryptocurrency is one of the best assets that investors can use to hedge their portfolios. The coin performs better than any other asset, including fiat currencies, government bonds, and traditional commodities like gold. The authors of the report emphasize that Bitcoin has already begun to show signs of becoming a protective asset. At the same time, the company believes that bitcoin is an excellent asset not only in times of crisis. So, in December 2019, Managing Director of Grayscale Investments Michael Sonnenshine said that the company expects an influx of investments in bitcoin after the transfer of $68 trillion of savings between generations in the next 25 years. Today, this capital is invested in traditional assets, but a significant part of these wealth millennials will invest in cryptocurrencies. Already, according to him, investments in GBTC are among the five most popular among young people, ahead of, for example, investments in Microsoft and Netflix.
The unprecedented financial measures taken by the US Federal Reserve, as well as the worsening recession, are forcing even the most conservative investors to rethink their current strategies and portfolio composition. Many of them are increasingly beginning to appreciate the fixed emission and non-correlation of Bitcoin — it is becoming a tool for risk diversification. Growing institutional interest is driving the acceleration of coin prices. Subscribe to our Telegram channel
Nhà sản xuất cổ phiếu giao dịch trên sàn giao dịch dựa vào coin kỹ thuật số hàng đầu Grayscale Capital đang xem xét lại chiến lược của mình về việc mời các nhà đầu tư tổ chức. Hiện tại, cổ phiếu GBTC được bán theo chế độ đặc biệt, có Bitcoin tại giá trị tài sản thuần (Native Asset Value – NAV). Xem thêm: giá eth remitano Không phí chênh lệch GBTC Cổ phiếu của Grayscale Bitcoin Trust (GBTC) thường được bán dựa trên nhu cầu hiện tại. Điều này cũng có nghĩa là một số nhà đầu tư sẵn sàng trả phí chênh lệch so với giá BTC giao ngay. Nhưng bây giờ, Grayscale kích thích nhu cầu bằng cách cung cấp BTC rẻ hơn. 📷 Alex Krü[email protected] $GBTC reopened today its private placement window, allowing accredited investors to buy shares at face value (rather than paying a premium on secondary markets). GBTC holds approx 238K bitcoin. Last time window opened (July), it saw 14K in inflows, about 8 days of miner issuance. 📷10509:16 - 10 thg 10, 2019Thông tin và quyền riêng tư Quảng cáo Twitter33 người đang nói chuyện về điều này “GBTC đã mở lại cửa sổ phát hành riêng lẻ, cho phép các nhà đầu tư được công nhận mua cổ phiếu theo mệnh giá (thay vì trả phí chênh lệch trên thị trường thứ cấp). GBTC nắm giữ khoảng 238K Bitcoin. Vào lần cuối mở cửa sổ (tháng 7), tổ chức đã mang về dòng vốn 14K sau khoảng 8 ngày phát hành công cụ khai thác”. Động thái này diễn ra đúng lúc phí chênh lệch của GBTC so với NAV giảm xuống gần như bằng 0. Trong quá khứ, phí chênh lệch đã tăng lên tới 47% và khoảng 22% trong thời điểm giá BTC cao nhất. Phí chênh lệch cao được coi là báo hiệu mức độ quan tâm mạnh mẽ của tổ chức. Ngược lại, phí chênh lệch giảm cho thấy giảm nhu cầu và thái độ tiêu cực đối với BTC. Grayscale vẫn giữ cổ phiếu của mình ở mức giá khá thấp, với tổng tài sản thuộc quyền quản lý duy trì tại 2.1 tỷ đô la. Xem thêm: ada la gi 📷 Grayscale ✔@GrayscaleInvest 10/09/19 UPDATE: Holdings per share, net assets under management and digital assets per share for our investment products. Total AUM: $2.1 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC 📷3004:11 - 10 thg 10, 2019Thông tin và quyền riêng tư Quảng cáo Twitter20 người đang nói chuyện về điều này “CẬP NHẬT 10/09/19: Holding trên mỗi cổ phiếu, tài sản ròng thuộc quyền quản lý và tài sản kỹ thuật số trên mỗi cổ phiếu cho các sản phẩm đầu tư của chúng tôi. Tổng AUM: 2.1 tỷ đô la BTC, BCH, ETH, ETC, ZEN, LTC, XLM, XRP, ZEC”. Grayscale quyết định không thêm tài sản mới Giá của GBTC đã phục hồi lên 10.38 đô la, tăng hơn 7% trong ngày qua. Mỗi cổ phiếu tương đương 0.001 BTC, được hạch toán ở mức 8.19 đô la dựa trên ước tính mới nhất. Mức này vẫn thấp hơn một chút so với giá BTC hiện tại là 8,538 đô la. Tính hấp dẫn của cổ phiếu GBTC đến từ khả năng tiếp cận trên thị trường OTC và có thể giữ trong các tài khoản môi giới thông thường. Các cổ phiếu cho phép giao dịch bằng BTC mà không yêu cầu tự lưu trữ. GBTC cũng đủ điều kiện là đầu tư tiêu chuẩn. Các tài sản khác vẫn không có phí chênh lệch. Cổ phiếu dựa trên Ethereum được bán giảm giá, theo đó, ETH có giá khoảng 181 đô la, trong khi giá trị thực đã tăng lên trên 188 đô la. Các tài sản khác như ZCash cũng được bán giảm giá thông qua Grayscale. Hoạt động của GBTC và phí chênh lệch thu hẹp không phải là chỉ số duy nhất phản ánh tâm lý BTC. Hiện tại, chỉ số fear và greed đang được cải thiện, tăng từ 27 lên 41 điểm trong vòng 1 ngày. BTC vẫn hấp dẫn trong giao dịch crypto-to-crypto và theo một logic khác trên thị trường quốc tế. Bản thân Grayscale quyết định duy trì lựa chọn tài sản hiện tại, không thêm coin mới
The characteristics of the 2019 bull market thus far, can be summarised by the following revised Elliott Wave model:
+ Wave-1 (06-FEB — 23-APR): subdivided into smaller degree impulsive waves. - Wave-2 (23-APR — 25-APR): a simple Zig Zag correction. + Wave-3 (25-APR — 14-MAY): a parabolic rise. - Wave-4 (14-MAY — 09-JUN): a complex Running Flat correction. + Wave-5 (09-JUN — ?): a parabolic rise?
The final and fifth wave of the waveset appears to be underway since 09-JUN. The following price zones speculate where this may terminate; using BITSTAMP prices:
@9440: Fibonacci 38.2% retracement of the entire 2018 bear market. @11390: Fibonacci 50.0% retracement of the entire 2018 bear market. @13340: Fibonacci 61.8% retracement of the entire 2018 bear market.
The first aforementioned Fibonacci zone has already been reached; hence, there is a possibility to suggest the uptrend has either completed, or is nearing completion. The Grayscale Bitcoin Trust (GBTC) passively tracks the price of Bitcoin, but trades on the OTC markets from Mon to Fri during the hours of US equity markets. The reduced price action of a non-continuous contract may offer clarity with parabolic waves; at this point in time a drop to 10.8 is required to suggest the uptrend is complete…
Once the uptrend concludes, it completes the first notable advance of the 2019 Bitcoin bull market. At which point, a Fibonacci 61.8% retracement may be expected for the first notable pullback of the 2019 Bitcoin bull market; perhaps commencing in the week of the Solstice and elapsing a couple of months over the summer lull. Afterwards, the bull market is expected to parabolically reignite by the early autumn and head towards new all-time highs in 2020. The long-term overall Elliott Wave model suggests four PRIMARY degree waves completed from mid-2010 to early-2019, and the fifth advancing wave is currently underway. Waves of PRIMARY degree elapse from a few months to a couple of years. A common wave relationship guides the price of the fifth wave to be equal to, or extend a Fibonacci 1.618 times, the length from the low of the first wave through to the high of third wave, projected from the low of the fourth wave. This provides a conservative target of the current bull market to conclude between $22912 and $35127, calculated using the BraveNewCoin (BNC:BLX) index…
How-to & FAQ for holding Bitcoin and Ethereum in an RRSP/TFSA
A few months ago I came across a way to hold crypto in my RRSP/TFSA and have been answering questions about how to do that in comments, DM's, and Skype consults. I figured it would be helpful to put together one big comprehensive FAQ. Cryptocurrency is treated as a commodity by the CRA and you must pay capital gains taxes on any profits if held outside a TFSA. If bitcoin goes to $1m as some are predicting, the Canadian government is going to be taxing a huge windfall in capital gains taxes. BACKGROUND Bitcoin & other crypto cannot be held directly in a RRSP/TFSA, and there are no eligible ETF's in North America yet. However, the ETN COINXBT which trades on the Stockholm Stock Exchange in Sweden (Nasdaq Stockholm) is eligible. ABOUT COINXBT COINXBT holds bitcoin directly and its price per share is based on a 0.005 multiple of the current bitcoin price. For example, if the current price of bitcoin is $10000USD, a share of COINXBT will be worth $50USD (ie: $493 Swedish Kroner) Company's website and full prospectus at: https://xbtprovider.com/ Price quote / chart: https://www.bloomberg.com/quote/COINXBT:SS HOW-TO TRADE Only some Canadian brokerages allow you to trade on eligible international exchanges in your TFSA. Some do not. Typically placing trades on international exchanges online is not an option and must be made over the phone broker-assisted at a much higher cost than typical North American securities. CANADIAN BROKERS I've called pretty much every brokerage to inquire if international securities can be held in a TFSA and what the fee is to transact. You may want to call yourself to see if policies have changed, but here's a summary:
National Bank: $75 per trade + $0.06 per share (confirmed works)
TD: Fee dependent on amount traded. Up to $5K is $187, $80K would be $520 per trade (confirmed works)
CIBC: $250 minimum, based on trade amount. $50K would be about $350 to buy and $350 to sell (confirmed works)
Scotia iTrade: $250 CAD per trade CAD, unlimited shares & order size (should work)
BMO Investorline: Fee-based on total trade amount. $50K would be $325 to buy $225 to sell, $50-$60K would be $350 to buy $240 to sell (should work)
Not available, or not available in RRSP/TFSA:
Interactive Brokers, can trade it, but not in RRSP/TFSA
HSBC (has access to almost every exchange other than Stockholm)
FAQ's Are you sure it's legal? I'm quite sure it's illegal.
I used National Bank Direct Brokerage. The fee's came out to $75 per trade + $0.06 per share. For example, the commission for a trade I did for 885 shares of COINXBT was $75 + $53.10 for a total of $128.10. Canadian funds were used to make the purchase and there were no forex fees for converting to Swedish Kroner (SEK)
How do I make a trade once I'm ready?
Call your brokerage and say you want to place a trade on the Stockholm stock exchange. You may be forwarded to a person that specializes in that, and eventually to a broker that deals with placing order on international exchanges. Tell them the symbol to trade is COINXBT and the name of the ETN is "Bitcoin Tracker One".
How do I calculate the number of shares to trade to max out my TFSA?
The price of COINXBT is in SEK. In my case using NB I took my balance minus anticipated fees divided by the current price to see how many shares I could buy. For example: For a $10,000 TFSA, current COINXBT price = $554.77SEK (84.27CAD), would be 117 shares at a cost of $9859.59 + $82.02 commission for a total of $9941.61CAD
Market or Limit order?
The first time I placed an order for COINXBT I tried to place a limit order a little below the market price. Over the next week the price of bitcoin ran up a lot and didn't come down. I ended up buying a lot higher. Since then I've been placing limit orders slightly above the current price or just market orders so that they go through right away. I've had no issues doing it either way.
When can I trade? Is it only possible to make the trade while the Swedish market is open and the TSX are open at the same time? Or can you place the order at any time of day?
XBT Provider has said they will monitor forks for 3-months and then decide what action to take. In the case of Bitcoin Cash, they sold the forked coins and distributed it as a dividend to anyone that held ETN shares on the fork date.
What about other cryptocurrencies?
An ethereum ETN was recently launched: COINETH that also trades on the Stockholm exchange. https://www.bloomberg.com/quote/COINETH:SS Other than that, I am not aware of any other eligible crypto securities that can be held in a RRSP/TFSA
How is the price of COINXBT determined?
It's based on the average price of the top 3 exchanges
Why not just buy GBTC?
GBTC is traded on the OTC exchange in the US and is not RRSP/TFSA eligible
Why can't I place a trade online myself?
For now, there are no crypto ETF's on North American exchanges. They have been in the works for years in the US, but no approvals yet. Evolve funds recently said they plan to launch a Canadian Bitcoin ETF. Trading COINXBT is a bit of a hassle, but you're getting in ahead of everyone else that are not willing to put in the time/effort. Once the Canadian/US ETF launches, it will probably be worth it to sell COINXBT and switch to the North American one which should be easy to trade online just like other ETF's.
Feedback If you've managed to get crypto into your RRSP/TFSA in any other ways than listed above please do leave a comment and I'll update the post. Thanks!
Congratulations, bitcoin, on your new ATH - $1337.00
EDIT: Thanks to wonderful posts by bobabouey, we have more updated information from this initial post. The highlights: -This post walks through the 'proof' of 17 shares sold at $1337/BTC. -The lack of historical data display is likely due to data outlier elimination. -The lack of asks appearing is likely due to complex OTC rules causing certain orders to not appear, by design. -The actual ATH of the day is likely 12 shares at $1750/BTC rate, screenshotted here: https://twitter.com/BigBurg_Design/status/595325478669549569/photo/1 "The dream" happened today. Some confusing data came along with the experience. I wanted to share everything I know, as a few mysteries remain. Mysteries are not good for confidence in new markets. Here's my story of $GBTC trading today. The trading all took place in my self-directed Ameritrade Roth IRA account. You do not have to be an accredited investor to do the trades that I did today. I bought shares of $GBTC this morning, when an ask of 100 was available at $42 per share. One share of $GBTC represents approximately 0.1 BTC. My situation: I was an early adopter, buying bitcoins primarily in 2011. The Roth investment I made today was not my primary bitcoin investment. I saw the shares available at an 'insane' 76.4% premium over market ($420/BTC when market was $238.) 1. If the market finds equilibrium in a downward direction, I will have fewer shares of bitcoin, but the long-term selling price will not change. I do not anticipate selling bitcoins below the $2k+ mark, then, in phased fashion.
If the market finds equilibrium in an upward direction, then the premium will not end up being a premium.
I was in a position to make a high-risk speculative bet. What happened next So, I issued a Limit buy for $42, above the Level II lowest Ask. I was filled for 100 shares at $37.98. I speculated the following outcomes: a) 5% - 1 or more shares fills at $133.7, living the dream. b) 90% - Lower Asks come in, higher Bids come in - market actors are motivated and driven to accelerating price discovery. c) 5% - nothing else happens. To my shock, a) happened, and quickly. This was also when the confusion began to set in. The sell showed as Filled within my Ameritrade account. The USD for the sale was credited to my account. The sale was updated to reflect the partial fill. The coins were bought at 12:11 CST. 1 Share sold at 13:05 CST for $133.7 6 shares sold at 13:31 for $133.7 At this point, my order showed 93 for sale, but the GBTC page still showed 100 for sale. Then, at 14:38 CST, 10 more shares sold at $133.7. Here's a screenshot of what it looked like from within my Ameritrade account: http://imgur.com/2AJncJ4 At that point, the Ask for 100 dropped off the GBTC page. The orders remained as in place within my account. When I looked to the Level II data within Ameritrade, the orders did not appear. There was a screenshot of a bloomberg feed on BitcoinTalk wall observer thread which did show my remaining GBTC sales for smaller amounts. I was unsure of what caused my various orders I tried placing to show up or not within the GBTC listing. The only successful occurrence was when I posted 100 for sale. However, other listings appear on the Ask side with share counts of 1. Perhaps they are accredited investors and the pipeline for an order to appear varies based on that. I subsequently tried re-posting my limit Ask, now for less than 100 shares, using various Limit options good for day, +etc, GTC, +ext. None caused the Ask to re-appear on the GBTC page nor on the Level II data provided by Ameritrade. For a brief period of time, the sale was reflected on GBTC's price page: http://www.otcmarkets.com/stock/GBTC/quote Someone on CryptoCrypt took a screenshot, which I have saved and uploaded here: http://imgur.com/iaWCLQa It shows the last sale price at 133.7, but interesting does not show that value in the upper range. By the time I saw this update and went to see for myself, the page did not reflect this sale, still showing a range of $37.98 to $42.00. It has remained that way until now. I speculate that there are some kinks in getting correct and complete streaming data from end to end, and that they'll be ironing out the kinks. I am hoping that if other buyers or sellers share what they know, we can more concretely say what data disparities exist. What I present here is a starting point. I guess until things begin behaving differently, just know that it is possible there are Asks which will fill, for below the posted, recognized Ask. 84 shares sat at $133.7 while the posted lowest Ask was $175.00. Please ask for any clarifications. I wanted to try to write this up while I remembered and had all the details. It is likely I described portions vaguely. It has been a long year and a half. No matter what happens from here, I'll always have the experience of breaking the gold-parity ATH with a new one. With a little luck the new record won't last long :-)
Cryptocurreny (Crypto) Infusion Into High Tech Industry Turning Around Faster Than Expected September 20, 2018
$SNTX News: Cryptocurreny (Crypto) Infusion Into High Tech Industry Turning Around Faster Than Expected September 20, 2018
After the Crypto craze around December 2017 many of the Crypto stocks have taken the plunge however like many industries out there when a bubble burst the survivors tend to rise to the top and begin to assert themselves as the industry leaders. With so many types of Crypto stocks these days, you have blockchain, video card manufactures, mining machine manufactures, machine hosting providers, crypto merchant providers, and cryptocurency ETF’s. Lets face it, its a currency so like the dollar which fuels most of our economy there are many different ways to make money by utilizing a currency. Active companies in the Crypto markets this week include NVIDIA (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ:AMD), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), HIVE Blockchain Technologies (NASDAQOTH: HVBTF), Suntex Enterprises, Inc. (OTC: SNTX), Bitcoin Investment Trust (OTC: GBTC), Ethereum Classic Investment Trust (OTC: ETCG), Broadcom (NASDAQ: AVGO). Broadcom (NASDAQ: AVGO) News: Broadcom Stock Is a Winner With Big Upside Potential September 18, 2018 via Investor Place – Thanks to the mainstream emergence of multiple secular-growth technology trends, the global semiconductor market has been on fire recently. While financial media outlets love to talk about semi-darlings Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Micron (NASDAQ:MU), and other high-flyers, one semi-stock which is often left out of the discussion is Broadcom (NASDAQ:AVGO). And, that seems to be just fine with AVGO shareholders. Not only have Broadcom’s numbers boomed with the rest of the semiconductor industry over the past five years, but, during that stretch, AVGO stock has rallied more than 500%. Bitcoin Investment Trust (OTC: GBTC) News: Bitcoin ETFs Have a Supporter at the SEC Cryptocurrencies have had a tough time of it lately. After working so hard to climb above $10,000, bitcoin prices have been down most of the year, and other cryptocurrencies have seen even more dramatic declines in 2018. Many in the industry have worked hard to give investors greater access to bitcoin and other crypto tokens, and a key part of their strategy has been the attempted introduction of bitcoin ETFs that ordinary investors can buy and sell on major stock market exchanges. So far, the U.S. Securities and Exchange Commission has stood in the way of allowing bitcoin ETFs to begin to trade, with multiple decisions rejecting requests from ETF providers interested in cryptocurrency-related products. Yet there's one commissioner on the SEC, Hester Peirce, who has been a voice of dissent, arguing that the regulatory agency's stance on bitcoin ETFs has actually been counterproductive in the SEC's goal to provide greater investor protection. Suntex Enterprises, Inc. (OTC: SNTX) News: Suntex Enterprises, Inc. Update Bitcoin Miners LAS VEGAS, May 03, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Suntex Enterprises (OTC:SNTX) is pleased to announce that the company with its current 145 bitcoin miners will be producing 2.9 bitcoins a month or about 35 bitcoins in a year. The company will be adding more miners and we anticipate having about 500 bitcoin miners by August of this year giving the company about 13.4 bitcoins being mined a month and around 160 bitcoins being mined in a year. For more information please visit our website at https://suntexenterprises.com. Contact Information: Media Contact email: [[email protected]](mailto:[email protected]) – +1(415)795-9111 SOURCE: https://marketwirenews.com
What is the best way to get crypto exposure in an RRSP/TFSA as of Oct 2017
I've got a bunch of dead money in my RRSP that I'd like to put to use, and I may want to utilize TFSA to hold Bitcoin-related assets tax-free. Some options: Bitcoin Tracker One (COINXBT, BITCOIN.XBT) A bitcoin ETN traded on the Stockholm exchange that tracks the price of bitcoin. 2.5% fee per year, charged daily, difficult to purchase from an international exchange, but Stockholm does qualify as an eligible exchange with the CRA. More info: https://xbtprovider.com/ Some Canadian brokerages that will execute a trade in COINXBT within an RRSP/TFSA: National Bank ($75 + $0.06/share), TD/CIBC/BMO/Scotia iTrade ($187-$250), Questrade ($195) See this reddit thread for more details Hive Blockchain Technologies (TSXV:HIVE) A crypto mining company traded on the Toronto Venture Exchange OTC Markets There are a few bitcoin tracking funds on the OTC markets (BITCF, GBTC), but these are not RRSP/TFSA eligible.
Silbert's trust GBTC is pretty impressive and adding shares at a decent rate.
I was curious and looking over the financials and quarterly reports of GBTC and noticed something interesting. They seem to be creating shares at a pretty decent rate. If you dont know GBTC is an open ended fund so they are allowed to issue shares at any time, but usually only issue them when there is a definite demand. Each share represents 1/10 of a bitcoin and currently there are 1,430,800 as of November 30th ,2015. According to quarterly reports , in September 2014 there were only 1,077,700 outstanding shares available and in September 2015 there were 1,405,500 shares outstanding. When you do the math it works out that in October and November alone, the fund added around 1.1 Million dollars of bitcoin to be sold on the stock market. If you do the math since September 2014, GBTC has added over 16 million worth of bitcoin to the trust which averaged monthly is about 1.1 million a month. The real question is where Silbert is getting his BTC, whether or not it is his own that he has been holding or if he is purchasing it in bulk on the open market, but regardless it is impressive to see the fund growing. PS. I used the exchange rate of 460 per btc to calculate the prices not the 620 that GBTC is going for and the quarterly reports and data was taken from the otc market's website.
A couple quick safety tips if you are trying to buy shares of GBTC: 1) Understand what you're buying: One share of GBTC = approximately 0.1 BTC. GBTC last traded at 42 or ~$420 for 1 BTC. That is a 75% increase from the current market of ~$240. Is the value of being able to hold Bitcoin in your IRA really worth paying a 75% premium? 2) Never use market orders: GBTC Trade OTC and has had poor liquidity thus far. Unless liquidity improves, market orders will have a high level of exposure to bad executions. GBTC was last quoted at: $45 x $175. If you were executed at $175/shr you pay $1,750 per Bitcoin. 3) Always use LIMIT orders: Limit orders guarantee the maximum price you are willing to pay. This protects you from the risk of receiving bad execution and paying more than you are willing. If you see an Ask order that you like, use a Marketable Limit. Place your limit order at or a above the existing order. Quote: http://www.otcmarkets.com/stock/GBTC/quote
Winklevoss Bitcoin Trust: Excerpts from the BATS Rule Change Proposal
Below are excerpts from the BATS rule change proposal which, if approved by the SEC, would allow shares of the Bitcoin Trust to be traded on the BATS exchange (https://www.sec.gov/rules/sro/batsbzx/2016/34-78262.pdf) Edit: To be clear, the approval of this rule change is separate from the SEC approving the Trust itself (i.e., its registration statement, Form S-1). So unfortunately, even if this rule change is approved, it doesn't necessarily mean the Trust itself will be approved anytime soon or at all These are all direct quotes shown in order, but in the interest of readability I have generally not used ellipses or otherwise indicated where clauses, sentences or sections are omitted. I have put in bold parts that I think are particularly notable: SR-BatsBZX-2016-30 34-78262 Jul. 8, 2016 Notice of Filing of a Proposed Rule Change to BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, to List and Trade Winklevoss Bitcoin Shares Issued by the Winklevoss Bitcoin Trust Bats BZX Exchange . . . filed with the Securities and Exchange Commission the proposed rule change. The Exchange filed a proposal to list and trade Winklevoss Bitcoin Shares (the “Shares”) issued by the Winklevoss Bitcoin Trust (the “Trust”) under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares. The text of the proposed rule change is available at the Exchange’s website at www.batstrading.com. In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. The Exchange proposes to list and trade the Shares under BZX Rule 14.11(e)(4), which governs the listing and trading of Commodity Based Trust Shares on the Exchange. The Shares will be offered by the Trust. Digital Asset Services, LLC, formerly MathBased Asset Services, LLC, will be the sponsor of the Trust (the “Sponsor”). Gemini Trust Company, LLC will be the custodian of the Trust (the “Custodian”). The Custodian will hold the bitcoin deposited with the Custodian on behalf of the Trust in a segregated custody account. The Custodian will use its proprietary and patent-pending offline (i.e., air-gapped) Cold Storage System to store the Trust’s bitcoin. The Trust is expected to issue and redeem Shares from time to time only in one or more whole Baskets. Certain Authorized Participants are the only persons that may place orders to create or redeem Baskets. Authorized Participants or their affiliated market makers are expected to have the facility to participate directly on one or more Bitcoin Exchanges. The investment objective of the Trust is for the Shares to track the price of bitcoin, as measured by the spot price at 4:00 p.m. Eastern time on the Gemini exchange. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust and are expected to be traded under the ticker symbol “COIN” on the Exchange. The Trust values its bitcoin as measured at 4:00 p.m. Eastern time using the Gemini Exchange Spot Price on each Business Day. The Trust has entered into preliminary conversations with a number of potential Authorized Participants as well as market makers, each of which is an experienced participant in the ETP marketplace and is actively engaged in trading ETPs. A number of these potential Authorized Participants, currently trade bitcoin and are already registered participants that trade on the Gemini Exchange. Authorized Participants will not be required to use the Gemini Exchange to trade their bitcoin, and the Gemini Exchange is not the only venue on which Authorized Participants can purchase bitcoin for delivery to the Trust. The Trust represents the first known ETP in the United States that seeks to track the price of a Digital Asset (a “Digital Asset ETP”). Securitized instruments have been created for other marketplaces, but have encountered limited success due to their lack of transparency and thorough regulatory oversight. Two notable examples are the Grayscale Investment Trust, which trades under the ticker GBTC on OTC Markets (formerly the “Pink Sheets”) and does not qualify as an exchange-listed product, and Bitcoin Tracker One, which trades under the ticker COINXBT on the Stockholm Stock Exchange. The Shares will be listed and trade on BZX . . . [and] will be eligible for margin accounts. The value of the Trust’s holdings will be reported each day on the Trust’s website. Using the precious metals exchange-traded trusts currently trading on U.S. exchanges as design paradigms, the Sponsor has structured the Trust to be a similar passive investment vehicle holding a single asset. Like the precious metals exchange traded trusts cited above, the Trust will only own and store bitcoin and will not be permitted to hold cash or any other Digital Asset. Custodian can use Signers to sign a specific message chosen by the Custodian that references a current event (i.e., to prove recency), thereby proving control of the private keys associated with the public Bitcoin addresses in which the Trust’s bitcoin are held. This allows the Custodian to evidence control of the Trust’s assets periodically during audits on-demand and without necessitating the transfer of any of the Trust’s bitcoin. Custodian will accept, on behalf of the Trust, delivery of bitcoin from Authorized Participants into the Trust Custody Account in the creation of a Basket. In order for an Authorized Participant to redeem a Basket and receive a distribution of bitcoin from the Trust, the Custodian, upon receiving instructions from the Administrator, will sign transactions necessary to transfer bitcoin out of the Trust Custody Account and distribute to the Bitcoin address specified by the Authorized Participant. Sponsor must engage an independent audit firm to periodically audit the Custodian’s Cold Storage System protocols and internal controls (“Internal Controls Audit”), and report to the Sponsor at least annually on such matters. Additionally, the Sponsor must engage an independent audit firm to biannually verify that the Custodian can demonstrate “proof of control” of the private keys that control the Trust’s bitcoin (“Proof of Control Audit”). One Proof of Control Audit will be conducted at the end of each calendar year and the other at random. The Administrator will use the Gemini Exchange Spot Price as measured at 4:00 p.m. Eastern time (the “Evaluation Time”) to calculate the Trust’s NAV. The Administrator will calculate the Trust’s NAV by dividing the net assets of the Trust by the number of the Shares outstanding as of the close of trading on the Exchange (which includes the net number of any of the Shares created or redeemed on such Business Day). The Trust will issue and redeem the Shares in Baskets only to certain Authorized Participants on an ongoing basis. On a creation, Baskets will be distributed to the Authorized Participants by the Trust in exchange for the delivery to the Trust of the appropriate number of bitcoin (i.e., bitcoin equal in value to the value of the Shares being purchased). On a redemption, the Trust will distribute bitcoin equal in value to the value of the Shares being redeemed to the redeeming Authorized Participant in exchange for the delivery to the Trust of one or more Baskets. On each Business Day, the value of each Basket accepted by the Administrator in a creation or redemption transaction will be the same (i.e., each Basket will consist of 50,000 Shares and the value of the Basket will be equal to the value of 50,000 Shares at their net asset value per Share on that day). Authorized Participants must be (i) registered broker-dealers or other securities market participants, such as banks and other financial institutions, which are not required to register as broker-dealers to engage in securities transactions, and (ii) DTC Participants. The Trust’s website, which will be publicly available prior to the public offering of the Shares, will include a form of the prospectus for the Trust that may be downloaded. The website will include additional quantitative information updated on a daily basis, including, for the Trust: (i) the prior Business Day’s reported NAV, the highest quoted bid price for the Shares (the “Best Bid”) and lowest quoted offer price for the Shares (the “Best Ask”), the mid-point of the spread between the Best Bid and the Best Ask at the time of the NAV calculation(the “Best Bid/Best Ask”), the daily trading volume of the Shares, and the calculation of the premium and discount of the Best Bid/Best Ask against the NAV . . . The Sponsor will calculate an estimated fair value of the Shares based on the most recent Gemini Exchange Spot Price (the “Intraday Indicative Value”), which will be updated and widely disseminated by one or more major market data vendors at least every fifteen (15) seconds during the Exchange’s regular trading hours. The Basket creation and redemption process is important for the Trust in providing Authorized Participants with an arbitrage mechanism through which they may keep Share trading prices in line with the NAV. If the market price of the Shares is greater than the NAV, an Authorized Participant can purchase sufficient bitcoin to create a Basket, and then sell the new Shares on the secondary market at a profit. If the NAV is greater than the market price of the Shares, an Authorized Participant can purchase Shares on the secondary market in an amount equal to a Basket and redeem them for bitcoin, and then sell the bitcoin at a profit. The Shares will be subject to BZX Rule 14.11(e)(4), which sets forth the initial and continued listing criteria applicable to Commodity-Based Trust Shares. The Trust currently expects that there will be at least 100,000 Shares outstanding at the time of commencement of trading on the Exchange. The Exchange deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange’s existing rules governing the trading of equity securities. BZX will allow trading in the Shares from 8:00 a.m. until 5:00 p.m. Eastern Time. Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (a) by order approve or disapprove such proposed rule change; or (b) institute proceedings to determine whether the proposed rule change should be disapproved. The Commission will post all comments on the Commission’s Internet website (http://www.sec.gov/rules/sro.shtml).
A Bitcoin Exchange Traded Note (ETN): Some technical background on ETNs
As noted here, a bitcoin ETN is expected to start trading mid-May. ETNs are really cool, but kind of complicated, so I thought some background would be helpful. What is an ETN? Fundamentally, an ETN is a bond ("note") issued by a financial institution and then traded on an exchange. Like other bonds, it will have a maturity date, an interest rate, and an expected payment at maturity. For an ETN that is designed to track the price of another asset or basket of assets, the ETN will generally pay no interest over the course of the bond, but have a redemption value based on the price of the asset it is designed to track. That redemption value will be payable on maturity, and sometimes during a daily redemption as well. So it's a derivative? Yes! Once live on an exchange, market participants will be trading ownership of a promise from the financial institution to pay them an amount based on the performance of the underlying asset. How does the financial institution issuing the ETN know it can meet its obligation to make payments based on the value of the underlying asset? Hedging! Most simply, if the financial institution buys one bitcoin for every time they issue an ETN with a value equal to one bitcoin, they will have a basket of assets with a value that increases and decreases directly in proportion to the value of their obligation to ETN holders. Because of the structure of ETNs and modern regulatory requirements, you take on the credit risk of the financial institution, meaning if they go bankrupt (either because their traders failed in maintaining the hedge or for any number of other reasons), you may not get the amounts owed to you. What other ETNs exist? ETNs exist for 'normal' asset classes, like gold and silver and oil, and also for wacky mixes of assets or particular groups of stocks. They're relatively easy to cobble together and market, and fundamentally Wall Street will market anything that can sell, so you see a lot of ETNs given the low barrier to entry. Will this increase demand for bitcoin? Yes and no. It's hard to imagine how they hedge the ETN without increasing bitcoin demand - they have to either buy bitcoins or bitcoin futures/options to balance their liabilities. Those markets are immature or technically risky, which is one reason why ETNs haven't come out yet (another being regulatory/compliance issues on the part of the financial institution that would be issuing the ETN - it's not surprising this isn't happening in the U.S.). So yes, in a round-about way demand for the ETNs should cause increased demand for bitcoin proper, as the financial institution's hedge positions are increased (buying bitcoin/bitcoin derivatives) as more ETNs are issued. As demand gets truly large, the financial institution issues new shares (and redeems them as well should the opposite occur). Can't this all go horribly wrong? You bet! Here's a fun example of an ETN tied to volatility issued by CS that went haywire: http://www.forbes.com/sites/ariweinberg/2012/04/17/lessons-from-the-tvix-washout/ How is that different from an ETF? ETFs generally represent pass-through ownership of the underlying asset. In other words, owning a share of the ETF means owning a slice of the underlying asset purchased by the fund. Theoretically you have no 'credit' exposure to whatever entity issued the ETF. In addition, ETFs have robust arbitrage mechanisms whereby authorized participants can purchase shares of the ETF directly from the fund in exchange for the underlying asset, or vice versa. This means if the ETF diverges materially from the net asset value of the asset it holds, money can be made risk-free by increasing or decreasing the supply of the underlying asset. How is that different from GBTC? Unlike an ETF, GBTC shares issued by the fund are subject to a 12-month lockup period. This prevents robust coupling of the underlying asset and the market price of the securities on the secondary market. More on the difference between GBTC and ETFs can be found in my post here: http://www.reddit.com/Bitcoin/comments/33rhg9/reality_check_on_the_gbtc_fund/ So why an ETN, or GBTC, and not an ETF? ETFs presently require explicit authorization from the SEC to trade in the United States. GBTC has a 12-month lockup period and likely restrictions on potential investors. ETNs and similar derivatives are a way to create new financial products quickly and bring them to market. That comes with expense, risk, and inconvenience relative to instruments like a traditional ETF, which would be more theoretically sound for gaining access to new asset classes like this. How does the ETN issuing financial institution make money? Fees! Often another complex formula, often a percent or two per year. So they have an interest in establishing a robust market. Does this mean access for institutional investors? Yes and no. It absolutely increases access, but it's important to realize institutional investors have a broad spectrum of rules regarding their investments. Some pension funds will only invest in highly rated debt or blue-chip stocks, for example, and a bitcoin ETN would hardly be an option for them. On the other end of the spectrum, the entire purpose of hedge funds is often to invest in assets that are otherwise challenging to obtain for technical or regulatory reasons. Private funds can and do invest in assets of all kinds - loan pools, international real estate, commodities, commodity futures, exotic derivatives, credit, etc. They exist and operate without the need for exchange traded products. To put it bluntly: "Wall Street" and "Institutional Investors" are not presently locked out of bitcoin investment. Many can and do buy bitcoin directly, and many alternative investment vehicles - like direct investment in GBTC rather than OTC trading of its shares - already exist. Products like ETNs broaden the investment pool, but they don't open it for the first time. tothemoonguy can be on standby, but don't look at May 18th as an unambiguous bat signal either. I like derivatives. Will there be futures and options based on the ETN too? Who knows! But derivatives mean new products to trade and new products and new trading generate new fees, so if we're lucky... it may well be derivatives all the way down. Background/source: I've worked on bringing ETNs to market in my professional life. Have to run now, but will look at questions later, and apologies for any typos or errors since I put this together quickly!
This has been a pattern that's repeated itself during the past 3 rallies since GBTC was accessible to OTC markets: GBTC premium has increased by 100%, 95%, and 40% respectively during these rallies (IMO the latest was the least b/c of the anticipation of ETF).
With the current 10% premium, I find GBTC to be of great value. Once again when fomo sets in and media picks up more on Bitcoin, the low liquidity of GBTC would likely manifest itself in the higher premiums. Reduced access of USD to bitcoin markets this time around will also be favorable to GBTC.
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