Author Topic: Recommend a Bitcoin/crypto currency ETF  (Read 25395 times)

FIREin2018

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Recommend a Bitcoin/crypto currency ETF
« on: March 30, 2021, 08:29:13 AM »
I'm not jumping through hoops to open a Coin wallet.
plus the fear that the coin depository could be hacked and i lose everything.
or if i keep it on my computer, hope my hard drive doesnt crash.

anyway, another reason for an etf is to have multiple crypto currencies.
ie: Bitcoin and Eth

So suggestions?

roboclimber

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Re: Recommend a Bitcoin/crypto currency ETF
« Reply #1 on: March 30, 2021, 12:44:41 PM »
There are no bitcoin ETFs for US investors (yet), though Goldman Sachs and Fidelity have filed with the SEC. The closest you can get is the Grayscale Bitcoin Trust (GBTC). It's not technically an ETF and has notable downsides, but its the largest fund out there. It is currently trading at a negative premium relative to the NAV which IMO makes it a great buy (I have a significant portion in my IRA).

FIREin2018

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Re: Recommend a Bitcoin/crypto currency ETF
« Reply #2 on: March 30, 2021, 02:38:55 PM »
There are no bitcoin ETFs for US investors (yet), though Goldman Sachs and Fidelity have filed with the SEC. The closest you can get is the Grayscale Bitcoin Trust (GBTC). It's not technically an ETF and has notable downsides, but its the largest fund out there. It is currently trading at a negative premium relative to the NAV which IMO makes it a great buy (I have a significant portion in my IRA).
thx.
what are the notable downsides?

roboclimber

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Re: Recommend a Bitcoin/crypto currency ETF
« Reply #3 on: March 30, 2021, 04:45:40 PM »
There are no bitcoin ETFs for US investors (yet), though Goldman Sachs and Fidelity have filed with the SEC. The closest you can get is the Grayscale Bitcoin Trust (GBTC). It's not technically an ETF and has notable downsides, but its the largest fund out there. It is currently trading at a negative premium relative to the NAV which IMO makes it a great buy (I have a significant portion in my IRA).
thx.
what are the notable downsides?

The most significant one is that it has a 2%APY fee (which accrues daily). Because it is a trust, you cannot actually exchange your shares for bitcoin, but the trust is also prevented from selling any assets except to cover expenses. There is a threat of competition of ETFs being approved which will take market share from GBTC, though they will likely drop fees and/or convert to an ETF if and when that happens. Currently GBTC is trading at a NAV discount because of these issues.

When you own GBTC, you do not actually control the private keys. To those that just want exposure to the asset, this may actually be a benefit since you do not have to take on the responsibility of managing the keys yourself. Grayscale has excellent security and can probably do a better job than just about any private individual, but ultimately you are relying on a 3rd party to secure your assets - which may be an advantage or disadvantage depending on your disposition.

soccerluvof4

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Re: Recommend a Bitcoin/crypto currency ETF
« Reply #4 on: March 31, 2021, 02:36:46 AM »
There are no bitcoin ETFs for US investors (yet), though Goldman Sachs and Fidelity have filed with the SEC. The closest you can get is the Grayscale Bitcoin Trust (GBTC). It's not technically an ETF and has notable downsides, but its the largest fund out there. It is currently trading at a negative premium relative to the NAV which IMO makes it a great buy (I have a significant portion in my IRA).
thx.
what are the notable downsides?

The most significant one is that it has a 2%APY fee (which accrues daily). Because it is a trust, you cannot actually exchange your shares for bitcoin, but the trust is also prevented from selling any assets except to cover expenses. There is a threat of competition of ETFs being approved which will take market share from GBTC, though they will likely drop fees and/or convert to an ETF if and when that happens. Currently GBTC is trading at a NAV discount because of these issues.

When you own GBTC, you do not actually control the private keys. To those that just want exposure to the asset, this may actually be a benefit since you do not have to take on the responsibility of managing the keys yourself. Grayscale has excellent security and can probably do a better job than just about any private individual, but ultimately you are relying on a 3rd party to secure your assets - which may be an advantage or disadvantage depending on your disposition.


I agree with all this and have been in and out of the name a few times. The one thing though you do pay a premium. It does look like Fidelity has been approved to be reviewed which means it has to be looked at , reviewed and given an answer and there the first to do so. I would expect to see an ETF by the end of the year. There are many crypto's out there and some pretty good ones that because of the way Bitcoin is designed could put a pretty big dent in Bitcoin. Like EV's the question is which ones. I could give you a list of names but to much speculation. Take your time, keep doing your homework and just because Bitcoin is between 55k-60k doesnt mean much in the big scheme of things. We are still at the infant stages of this new growth opportunity that is seemingly here to stay.

FIREin2018

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Re: Recommend a Bitcoin/crypto currency ETF
« Reply #5 on: April 26, 2021, 09:49:40 AM »
There are no bitcoin ETFs for US investors (yet), though Goldman Sachs and Fidelity have filed with the SEC. The closest you can get is the Grayscale Bitcoin Trust (GBTC). It's not technically an ETF and has notable downsides, but its the largest fund out there. It is currently trading at a negative premium relative to the NAV which IMO makes it a great buy (I have a significant portion in my IRA).
What do you think of BLOK?
https://screener.fidelity.com/ftgw/etf/goto/snapshot/snapshot.jhtml?symbols=BLOK

 

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