Crypto-Tracking Stocks: Another Way To Invest In Cryptocurrency
One of the first institutions to grasp the opportunity represented by cryptocurrency was Grayscale. To achieve this, it established the Bitcoin Investment Trust in 2013 to provide accredited investors exposure to this new asset. The idea was inspired by previous products, such as the SPDR Gold ETF, which allows you to purchase shares in order to gain exposure to the underlying asset without having to buy and hold the gold itself.
Soon afterward, the Bitcoin Investment Trust was approved to move into the over-the-counter market. Those who had invested earlier could now resell their shares in a public market under the symbol “GBTC.” This effectively makes GBTC a secondary market for Bitcoin Investment Trust shares.
As you might expect, investment trust products generally require pretty substantial minimum investments. However, GBTC does not and is available to anyone who has a brokerage account, including retail investors.
Read full from Forbes Councils Moe Adham