Grayscale Bitcoin Trust (GBTC) Shares Reopen the Periodic Private Placements for Accredited Investors

  • Grayscale Bitcoin Trust (GBTC) reopens the private placement after an earlier announcement this month.
  • Each share of GBTC to cost investors 0.00097876 BTC.

In a positive turn of events (again) at Grayscale Bitcoin Trust, private placement will resume on the shares of the Grayscale investment as the periodic holding curtain opens. The shares are available to accredited investors for a daily subscription with each share going for 0.00097876 Bitcoin (BTC).

As defined in Rule 501(a) of Regulation D under the Securities Act, investors who wish to purchase through Grayscale Bitcoin Trust will need to prove they are accredited, investors. The Grayscale (GBTC) shares are however not being offered as a security but as a

“pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act.”

Grayscale Bitcoin Trust is well known for its #DropGold campaign, urging investors to choose BTC over the precious metal. Well, the company may have a point on that as BTC YTD returns (230 %+) is brushing gold’s YTD (9.60%), despite a 9-year high price.

The company offers investors a traditional investment vehicle that allows exposure to the coin without directly owning it, avoiding the wild price swings associated with BTC. Each GBTC share is represented by the price of BTC, less expenses and fees. With the recent report from the company shows over $2.66 billion dollars in assets under management (AUM), with BTC investments accounting over 90% of these assets.

Investors who wish to purchase the GBTC share will need to fork out 0.00097876 BTC (~$10 USD) per share. Once purchased, the shares will be in a one-year holding period before investors can sell the shares. The announcement came with the following warning to investors,

“Because the Trust does not currently operate a redemption program, there can be no assurance that the value of the Shares will approximate the value of Bitcoin held by the Trust when traded on a secondary market and the Shares may trade at a substantial premium over, or discount to the value of the Bitcoin held by the Trust.”

The Grayscale Bitcoin Trust reported a growth of over 300% in the past 6 months as the cryptocurrency landscape saw increased demand. The platform also reported its AUM crossing the $3 billion USD mark as BTC’s price rallied above the $13,000 USD mark earlier in the month.

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