GBTC now has competition

[Triplethought]

I wanted people to know that there is a new stock product managed by fidelity that tracks bitcoin called OBTC, which has much lower expense than GBTC - they charge a 49 basis point management fee (which is much lower fee than GBTC and very etf like fee).

Disclaimer: When I chart the btc-usd against OBTC and BTC on Yahoo for the last 5 days OBTC has diverged (to the downside) and doesn't seem to be tracking. I suspect because it's so new... I assume this is temporary. However it may also be an opportunity to get in before it pops back up.

some discussion about this on stockwits, some of which is cynical and some "above my pay grade " meaning I don't understand what they're saying. https://stocktwits.com/symbol/OBTC

Let's keep an eye on it

[Triplethought]

FWIW I Just tried to buy a share on Vanguard and it said buy orders not allowed please call and gave the 800 number

[ultramartian]

It closed at $27 yesterday and today it pops to $42, a 55% increase. It is too volatile in my opinion.

[Triplethought]

It closed at $27 yesterday and today it pops to $42, a 55% increase. It is too volatile in my opinion.

That's what I was saying when I posted this before the market opened - that it was likely to pop. Anyway, yah I expect it will settle down and track BTC-USD more closely. Even so Bitcoin is quite volatile. We like volatility remember?

[RhinoRay]

I would stay away from OBTC right now. It is trading at a 160% premium to the representative NAV. Each share of OBTC represents .00034142 Bitcoin. in other words, yesterday at 4 PM close, bitcoin was priced at $48,484. With no premium, this would represent a price of $16.55 for OBTC. The $42.99 closing price of OBTC represents a 160% premium. In context, GBTC closed at $48.40. Each share of GBTC represents 0.00094726 Bitcoin. This translates to a representative price of $45.93 for GBTC. Meaning that GBTC is trading at a premium of 5.38%. By the way, this is a very low premium for GBTC. For a while it was trading at a 15% premium.

OBTC reminds me of what happened with ETHE back in December. it's premium was well over 100%. You'll see what happened after that. On 12-22-20 ETHE closed at $23.40, yet Ethereum was trading at $576 at 4PM on 12-22-20. Yesterday ETHE closed at $16.65, this represents a premium of just 3%, for 1 share of ETHE represents 0.01025725 of Ethereum, which mean that with no premium ETHE would represent a price of $16.165.

This is what happens when people don't understand what they are buying and what the underlying asset represents and bid the stock up.

The true competition to GBTC is on the Toronto Exchange. It is a true ETF... BTCC. You may get a quote on American brokers. I know that Fidelity uses BTCC_U:CA some of the other brokers you would use either BTCC.U or BTCC/U:CA. This will give the price in USD for Purpose Bitcoin Fund. Although I am not as familiar with the method they price the underlying asset, I believe it accurately tracks Bitcoin.

[Budge]

I would stay away from OBTC right now. It is trading at a 160% premium to the representative NAV. Each share of OBTC represents .00034142 Bitcoin. in other words, yesterday at 4 PM close, bitcoin was priced at $48,484. With no premium, this would represent a price of $16.55 for OBTC. The $42.99 closing price of OBTC represents a 160% premium. In context, GBTC closed at $48.40. Each share of GBTC represents 0.00094726 Bitcoin. This translates to a representative price of $45.93 for GBTC. Meaning that GBTC is trading at a premium of 5.38%. By the way, this is a very low premium for GBTC. For a while it was trading at a 15% premium.

OBTC reminds me of what happened with ETHE back in December. it's premium was well over 100%. You'll see what happened after that. On 12-22-20 ETHE closed at $23.40, yet Ethereum was trading at $576 at 4PM on 12-22-20. Yesterday ETHE closed at $16.65, this represents a premium of just 3%, for 1 share of ETHE represents 0.01025725 of Ethereum, which mean that with no premium ETHE would represent a price of $16.165.

This is what happens when people don't understand what they are buying and what the underlying asset represents and bid the stock up.

The true competition to GBTC is on the Toronto Exchange. It is a true ETF... BTCC. You may get a quote on American brokers. I know that Fidelity uses BTCC_U:CA some of the other brokers you would use either BTCC.U or BTCC/U:CA. This will give the price in USD for Purpose Bitcoin Fund. Although I am not as familiar with the method they price the underlying asset, I believe it accurately tracks Bitcoin.

Re: OBTC All true as an investing vehicle but from a trading standpoint? Yesterday's volatility gave opportunities to move in and out, if you're crazy enough!