Bitcoin Investment Trust (GBTC)

[John9999]

here is the specifics...


http://www.cmegroup.com/trading/bit...itm_medium=cse_promotion&itm_campaign=bitcoin


I am very familiar NQ, ES etc... help me understand this... the contract is $25 and it controls 5 Bitcoins ?? am I reading that right?

 

[SoesWasBetter]

oh dammm that soon?

I know you were hoping you'd be getting your Xmas gelt before it started. Time to bust open that piggy bank

 

[SoesWasBetter]

here is the specifics...


http://www.cmegroup.com/trading/bit...itm_medium=cse_promotion&itm_campaign=bitcoin


I am very familiar NQ, ES etc... help me understand this... the contract is $25 and it controls 5 Bitcoins ?? am I reading that right?

Yep, a new paradigm like bitcon requires earth shaking leverage.

 

[John9999]

Yep, a new paradigm like bitcon requires earth shaking leverage.

OK let me see if I got this right. And I’m going to use some round numbers so this won’t benprecise. I want to make sure I understand this because I have never held futures contracts overnight as I’ve only day traded them utilizing max Margin for intraday trading.

Currently the ES is approximately 2600. The ES has a 50 X factor. . So right now for an investment of $2600 cash (no margin) in your account you can hold one ES mini ,carryover night, hold for weeks or months and you control a $135,000 asset. Currently the longest expiration in June 2018

If I got this right for a $25 investment we will control five coins. If bit coin was at 10,000 we would control he $50,000 investment for a 2000 leverage factor.

Sure that’s going to be phenomenal when things go the right way. But there could be a very dark side that much leverage.

Am i reading this correctly?

 

[SoesWasBetter]

What do you think? You have three guesses . Choose wisely.

 

[John9999]

What do you think? You have three guesses . Choose wisely.

Haha. Now am I correct. Cause 2000 leverage is just whacko. Why is CME structuring the contract like that ?

 

[Muffhands]

This for me is a buy and hold. I will not be trading it... hell, some big time guru came out today and predicted BTC goes to $1,000,000... I do not care about a big gap... I am not putting my life savings at this, if I lose it won't affect me much... but if this continues to go and go it could be life changing...

I guess everyone has to weigh out their own risks and make their own decision.

for me.. this BTC Trust is good for now until the CME or such offers some other way

Just buy btc dummy

 

[Hoi]

So let me ask it this way....how would you feel if 3 years from now BTC went to 1,000,000 but GBTC went to zero? Could you live with that?

That's a bit odd comment (coming from you).
You know that GBTC is fully backed by real BTC, so it's price will at least match that. It's normally (much) higher quoted because it's (currently) the only ETF tradable by Americans. And thereby the only one who can be held in an IRA-account (with all its TAX benefits). As far as I know you cannot hold Futures in IRA, so as long as there aren't yet other ETF's this GBTC is king.

 

[John9999]

Just buy btc dummy

There’s already enough risk with bit coin already. I don’t want the additional risk of an exchange I can’t trust, having to keep my keys secure, wallets and all that mess.

 

[MrMuppet]

John, I dont get it. Why dont you just do your homework, buy BTC, store it on an airgap hardwallet and forget it.

You just dont know how this stuff works, man.

You trust IB more than yourself?? WTF?!

IB can blow up. Government can seize your account. Hell, who would have thought REFCO would go belly up?

The only thing that cant ever blow up is your private key. Don't be such a sheep...that's pathetic.

Get yourself a book about Bitcoin or at least read the couple of pages of Satoshis whitepaper.

You don't even want to trade, you just want to hold. And there's nothing safer than a hard wallet...and you want to hand over your money to a broker??? Why???