Try a BTC Investment Trust
The idea of cryptocurrency as an investment asset is still quite new,
and fear of the unknown is unfortunately keeping some investors from putting their money into Bitcoin (BTC)
despite a strong interest in this new asset class. One investment firm is trying to assuage investors’
apprehensions by creating a Bitcoin Investment Trust, which allows people to speculate on the changing
values of BTC without actually owning any Bitcoins themselves.
Grayscale’s Bitcoin Investment Trust
The company behind this new investment product, first created in 2015, is Grayscale Investments,
and the trust (GBTC) currently has just under 1.5 million outstanding shares with a market capitalization
of $62.6 million USD. The minimum investment to purchase shares of the trust is $25,000. This investment
represents the first ever publicly quoted security which derives its value solely from the value of BTC.
The value of the investment trust tracks the price of Bitcoin, and as such is subject to the same volatility
and large potential gains (and losses), but without the hassle of buying the actual digital currency and storing
it securely. This may also be an appealing alternative to some investors who are concerned about liquidity and the
long time it may take to open and close a position in BTC in some cases.