GBTC Private placement vs Secondary market price

Arnie · Dec 4, 2020

Has anyone here invested in a private placement with Grayscale Trust? I would be doing this in a tax deferred account.
It seems a little too good to me.

TimMykes · Dec 4, 2020

yeah, maybe one day they just go poof

formikatrading · Dec 4, 2020

Why a private placement? What's different about the investment vs investing in GBTC or ETHE?

Arnie said:
Has anyone here invested in a private placement with Grayscale Trust? I would be doing this in a tax deferred account.
It seems a little too good to me.

BKR88 · Dec 4, 2020

Arnie said:
Has anyone here invested in a private placement with Grayscale Trust? I would be doing this in a tax deferred account.
It seems a little too good to me.

You'll be required to hold them for 1 year before selling.
http://www.globenewswire.com/news-r...nnounces-Resumption-of-Private-Placement.html

From my understanding, if you buy the private placement you get the shares at NAV to the price of bitcoin rather than buying them at a 20-25% premium.

Arnie · Dec 5, 2020

formikatrading said:
Why a private placement? What's different about the investment vs investing in GBTC or ETHE?

With PP I get the shares at NAV ($18.21 Friday close), instead of at what GBTC closed at ($23.22).
With Ethereum it's even better:
NAV of $55.62 and stock price of $122.05

Arnie · Dec 5, 2020

If just trading in and out, better to just trade the stocks due to the volatility, buy if BTC really is going much higher, like $100,000 I think the PP is the better route.

trend2009 · Dec 5, 2020

BKR88 said:
You'll be required to hold them for 1 year before selling.
http://www.globenewswire.com/news-r...nnounces-Resumption-of-Private-Placement.html

From my understanding, if you buy the private placement you get the shares at NAV to the price of bitcoin rather than buying them at a 20-25% premium.

can I buy from private placement and hold one year then sell at the secondary market to earn nav discount?

BKR88 · Dec 5, 2020

trend2009 said:
can I buy from private placement and hold one year then sell at the secondary market to earn nav discount?

Yes, that is the allure to buy the private placement. Otherwise might as well buy in the open market.

trend2009 · Dec 5, 2020

BKR88 said:
Yes, that is the allure to buy the private placement. Otherwise might as well buy in the open market.

How to buy from private placement?

formikatrading · Dec 5, 2020

Holy cow! That premium for ETHE! Geez! I could tell it was out of whack so I sold it on Thursday but it bounced back pretty good. There will always be a premium but that is huge!

Arnie said:
With PP I get the shares at NAV ($18.21 Friday close), instead of at what GBTC closed at ($23.22).
With Ethereum it's even better:
NAV of $55.62 and stock price of $122.05