Did you know that the first cryptocurrency was called eCash and it was released in 1983? If you are new to the world of cryptocurrency and are hearing the terms GBTC and BTC, but are not sure what the differences are, you are in the right place.
We have put together this short guide to share more about GBTC vs. BTC.
Read on to learn more.
What Is GBTC?
GBTCis a trust that allows a person to invest in Bitcoin. Keep in mind that Grayscale Bitcoin only holds Bitcoin.GBTC is registered by the SEC (Securities and Exchange Commission) and it reports to the Commission.
What Is BTC?
Bitcoin is considered the “grandpa” of the cryptocurrency world because it is the first crypto to truly be accepted as a digital currency. It wasreleased in 2009 to the public as a decentralized coin.
All the coins are digital and exist on what’s called a blockchain. There are only so many coins available so once they are all mined, no more Bitcoins can be made.
Price
The price fluctuations that GBTC experiences follow the price movements from BTC. They don’t always follow the movement right away, sometimes they are a bit late to display the changes.
While BTC is traded any time of day (24/7), GBTC is only traded during the standard market hours (6 am to 5 pm). This means that when BTC price collapses or goes down during the night, GBTC investors are not able to sell their stocks right away to try to save some of their funds.
Theprice of bitcoin CADor USD is differentiated by the currency exchange in those countries but Bitcoin’s value itself is the same all around the globe. BTC is the more popular and more expensive crypto option out there. GBTC has never been valued at more than around $50 per coin, where BTC has seen a value of around $60,000 at one point.
Technical Aspects
GBTC are stocks from the Grayscale Bitcoin Trust, so they are not a cryptocurrency all on their own. Their token form is considered a crypto.
Bitcoin, on the other hand, is a cryptocurrency. BTC has its own blockchain and it is used by many online platforms. The main goal of Bitcoin when it was released was to replace fiat money.
BTC offers fairlyfast peer-to-peer transactions and at a relatively cheap cost. The new coins for Bitcoin are created by “miners” that have powerful computers that solve complex math problems that help mine new tokens for the public to buy.
Feeling Like a GBTC vs. BTCPro?
Now that we cleared up theGBTC vs. BTC debate, you can make an informed decision on whether you want to spend your hard-earned money on either or.
If our blog post came in handy, there’s more where this came from. Make sure you keep browsing this section for our latest guides.
FAQs
While BTC is traded any time of day (24/7), GBTC is only traded during the standard market hours (6 am to 5 pm). This means that when BTC price collapses or goes down during the night, GBTC investors are not able to sell their stocks right away to try to save some of their funds.
What is the difference between GBTC and BTC? ›
BTC-USD - Volatility Comparison. The current volatility for Grayscale Bitcoin Trust (BTC) (GBTC) is 18.27%, while Bitcoin (BTC-USD) has a volatility of 20.38%. This indicates that GBTC experiences smaller price fluctuations and is considered to be less risky than BTC-USD based on this measure.
How many GBTC equals 1 bitcoin? ›
Convert Bitcoin to Grayscale Bitcoin Trust
| GBTC | BTC |
|---|
| 1 BTC | 1,133.37 GBTC |
| 5 BTC | 5,666.86 GBTC |
| 10 BTC | 11,334 GBTC |
| 25 BTC | 28,334 GBTC |
5 more rowsWhat index does GBTC track? GBTC tracks the CoinDesk Bitcoin Price Index (XBX), which provides a USD-denominated reference rate for the price of spot Bitcoin.
Is BITO better than GBTC? ›
BITO - Performance Comparison. In the year-to-date period, GBTC achieves a 71.17% return, which is significantly higher than BITO's 53.60% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Why GBTC is better than Bitcoin? ›
What Makes GBTC Different from Directly Owning Bitcoin? GBTC offers a way to invest indirectly in bitcoin through an exchange-traded fund and gain exposure to bitcoin price movements. Owning bitcoins directly means you actually own the individual tokens.
What are the disadvantages of GBTC? ›
Pros and cons of GBTC
GBTC provides accessible exposure to Bitcoin but faces criticism for trading premiums, high asset management fees and potential deviations from the underlying asset's value.
How is GBTC price determined? ›
Similar to Bitcoin, the value of GBTC is determined by the supply and demand for it on the market. The price will rise when demand for GBTC is high, and there are more buyers than sellers. The price will tend to fall when there is low demand and more sellers than buyers.
What is the new symbol for GBTC? ›
The Grayscale Bitcoin Mini Trust will trade under the ticker “BTC,” according to a filing Tuesday with the Securities and Exchange Commission. The firm has proposed spinning off part of its large Grayscale Bitcoin Trust GBTC, which trades under the symbol “GBTC,” to seed the new ETF, the filing shows.
What is the value of a single bitcoin? ›
Bitcoin Price Chart (BTC/USD)
| 24 Hour High | 24 Hour Low | Market Capitalization |
|---|
| 67,100.78 USD | 65,953.14 USD | 1,315,527,870,785.21 USD |
Market commentators argue that the bankruptcy of crypto giant FTX has played a significant role in the selloff of GBTC. FTX was a major holder of GBTC before it filed for insolvency in November 2022, holding about 22 million shares as of Oct.
Why is Grayscale dumping Bitcoin? ›
Grayscale's high management fees led investors to flock to other ETF issuers, according to a crypto trader. Grayscale reportedly had to sell Bitcoin holdings to pay back investors.
Why does GBTC have outflows? ›
Much of GBTC's outflows come from Genesis selling shares, says analyst.
Why is GBTC fee so high? ›
Grayscale may be sticking to high fees for its spot Bitcoin (BTC) exchange-traded fund to keep “stuck” holders from cashing out while betting that Bitcoin's price will continue to rocket upward, according to one market analyst. The Grayscale Bitcoin Trust (GBTC) has seen daily outflows since its launch on Jan.
What are the risks investing in GBTC? ›
Grayscale Bitcoin Trust (GBTC): High annual management fees and susceptibility to fluctuations in shares raise concerns about its long-term sustainability. Franklin Bitcoin ETF (EZBC): Concentration risk makes this ETF a risky choice.
Which ETF holds the most Bitcoin? ›
Ranking the Largest Bitcoin ETFs in the U.S.
| ETF Name | Ticker | AUM |
|---|
| iShares Bitcoin Trust Registered | IBIT | $6.6B |
| Fidelity Wise Origin Bitcoin Fund | FBTC | $4.7B |
| ARK 21Shares Bitcoin ETF | ARKB | $1.6B |
| Bitwise Bitcoin ETF Trust | BITB | $1.2B |
4 more rowsMar 11, 2024
Trading GBTC vs.
As of mid-October 2023, it had a negative premium rate of 15.87%, which means that the GBTC stock price is around 15.87% per share lower than the market price of Bitcoin. On the other hand, Bitcoin can be traded on both CEXs and DEXs, depending on your risk tolerance, expertise, and preferences.
What are the advantages of GBTC? ›
Pros: Convenience and Accessibility: Investing in GBTC provides an easy and convenient way for investors to gain exposure to Bitcoin through their brokerage accounts. It eliminates the need to set up and manage a separate cryptocurrency wallet. Regulated and Compliant.
Why is GBTC not an ETF? ›
Grayscale had been unsuccessfully trying to convert its trust into an ETF since 2016 and filed a lawsuit against the SEC in 2022 after the regulator rejected its new application. Grayscale Bitcoin Trust was converted from a trust to an ETF (GBTC.
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