London, UK, ZEX PR WIRE – In the last few years, cryptocurrency has gone from a niche topic to something discussed in mainstream media.
Cryptocurrency is not just an investment opportunity anymore – it’s a phenomenon with global implications. Meanwhile, Bitcoin has become one of the most popular forms of cryptocurrencies available, and there are now many ways to invest in the currency. One company that provides these opportunities is Grayscale Investments, which offers various types of investments, including Bitcoin Trusts and Zcash Investment Trusts.
The company also invests in Ethereum Classic Investment Trust and two other trusts: Bitcoin Cash Investment Trust and Litecoin Investment Trust. FinancialCentre broker Daniel Klien says that these four trusts expose investors to some of the world’s most popular cryptocurrencies while limiting their risk because these investments can be traded on the stock market.
Investing in a Grayscale Bitcoin ETF is not like investing in some other cryptocurrency options. Investors will be trading their investment with their regular brokerage account and are subject to market forces like these securities would be if they were stocks. The Bitcoin ETF allows investors to take advantage of this cryptocurrency’s long history and price stability.
This investment also has the added benefit of being an easy way to get into Bitcoin, especially for those who want exposure to cryptocurrencies but concern themselves with security issues in a digital wallet or the complexity of buying a cryptocurrency directly.
What is a Grayscale Bitcoin ETF?
A Grayscale Bitcoin ETF provides investors with the opportunity to trade their investment on a regulated securities exchange while avoiding some of the complexities involved in purchasing Bitcoin. This type of bitcoin investment is also more cyber secure as it doesn’t involve using a digital wallet.
Investors can buy shares in a Grayscale Bitcoin ETF that trades under the ticker GBTC. The price of one share increases or decreases based on how many bitcoins are held in trust by Grayscale Investments at any given time. Shares bought and sold every day on markets impact the price just like stocks do because they are tradable assets.
The company has recently announced that they are preparing to launch the world’s first regulated Bitcoin ETF on NYSE Arca soon. This Grayscale Bitcoin ETF is backed by a real-time, fully audited physical holding of bitcoins ensuring that the product can be trusted.
The investment group has been working with regulators for several years and believes that this will be the first regulated exchange-traded bitcoin fund available to US investors in early 2018.
Why are investors interested in this investment opportunity?
Grayscale Investments provides investors with a variety of investment opportunities in Bitcoin and other cryptocurrencies. One of its products is its GBTC Bitcoin Trust, which trades as shares on the American Stock Exchange (NYSE) under the ticker GBTC. This type of bitcoin investment is an easy way for investors to access Bitcoin without worrying about managing their own digital wallet or other security risks.
This type of bitcoin investment is also less risky than purchasing bitcoins directly because those who invest in it are subject to market forces like they would be if they were stocks. Investors can take advantage of Bitcoin’s long history while enjoying the stability that this currency provides.
Why invest in a Grayscale Bitcoin ETF?
The GBTC is the only investment that allows investors to trade with their regular brokerage account because it has been structured as an ETF. This provides access to a wide range of investors interested in this product but may not have the resources or interest in investing directly in a digital wallet.
Grayscale Investments does have other investment opportunities that offer similar exposure to bitcoin, including the Bitcoin Investment Trust (GBTC), which trades similarly to an ETF and is open only to accredited investors like institutions. Many potential investors interested in this product but do not meet the requirements of these specific trusts can benefit from an easy access product like the GBTC.
The Grayscale Bitcoin ETF will be the first regulated bitcoin fund available to US investors. This puts it on par with other investment options in a market growing rapidly over recent years.
How does investing in a Grayscale Bitcoin ETF differ from other crypto investments?
Investing in a Grayscale Bitcoin ETF is not the same as investing in other crypto investments for these reasons:
- A Grayscale Bitcoin ETF provides investors with an easy way to access bitcoin without having to worry about managing their own digital wallet or other security risks.
- Grayscale Investments offers various types of investments, including Bitcoin Trusts and Zcash Investment Trusts.
- The company has recently announced that they are preparing to launch the world’s first regulated Bitcoin ETF on NYSE Arca soon.
- This investment also comes with the added benefit of being an easy way to get into bitcoin, especially for those who want exposure to cryptocurrencies but concern themselves with security issues in digital wallets or the complexity of buying cryptocurrency in general.
- This Grayscale Bitcoin ETF is backed by real-time, fully audited physical holdings of bitcoins.
- For several years, the company has been working with regulators and believes that the feed will be available to US investors in early 2018.
As institutional investors begin to notice Bitcoin, many questions remain regarding the future price and longevity of cryptocurrencies like bitcoin. It is important for those who want to start investing in cryptocurrency to do their research and understand the risks involved — an easy way is through a Grayscale Bitcoin ETF.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.