Today’s reads on BTC on exchanges (Oct news)
Grayscale Bitcoin Trust (OTC: GBTC) was incepted on September 25, 2013. Currently has over $40B in assets under its control. The trust holds actual Bitcoin rather than derivative contracts. The price of Bitcoin is often volatile on news, including that of potential government regulations. This fund has an annual 2% fee. The scale of the GBTC trust is vast with approximately 3.4% of the world’s BTC supply. Has filed to convert to a Bitcoin ETF. Is currently trading at a discount.
ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) began trading on October 19, 2021, the first ETF for cryptocurrency in the United States. It does not purchase Bitcoin directly, it invests in futures contracts where Bitcoin is the underlying asset. It’s a move that could eat into returns versus a spot-based ETF that actually owns and holds the crypto. The fund is actively managed and has a 0.95% expense ratio as a result.
Another similar fund, The Valkyrie Bitcoin Strategy ETF (NASDAQ: BTF) came online Friday. This should create more supply in the market and reduce the demand for BITO in turn.
References
https://seekingalpha.com/article/4461852-proshares-bitcoin-etf-vs-grayscale-bitcoin-trust
https://www.fool.com/investing/2021/10/21/3-reasons-why-you-may-want-to-avoid-proshares-bitc/
https://sg.news.yahoo.com/bito-vs-gbtc-vs-btc-173038733.html
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