What is GBTC and How to Buy GBTC？

GBTC: Is it a Stock?

Let's clear this up, shall we? Not a stock, GBTC. Not really a common stock, it is. Stocks are ownership interests in corporations like Tesla Inc. and Apple Inc. On the other hand, GBTC shareholders own a portion of an open-ended grantor trust. Grantor trusts are required to maintain a fixed portfolio as opposed to one that fluctuates. These trusts typically hold physical goods like gold or fiat. GBTC is a trust that only holds bitcoin in this context.

The BTC/USD exchange rate is tracked by Grayscale Bitcoin Trust. As a result, you'll see that their price is very similar to that of Bitcoin. However, there are some circumstances in which investor sentiment can impact the trust's price. The stock price could outperform or underperform BTC's

Furthermore, the Investment Company Act of 1940 does not provide grantor trust protection. This implies that you are unable to use investor protections when buying GBTC. They are also exempt from regulation by the Commodity Futures Trading Commission. Thankfully, the Security Exchange Act of 1934 and the Securities Act of 1933 remain in force. Grantor trusts must therefore regularly disclose their financial information. The recent GBTC turbulence was also started by this financial disclosure.

How to Purchase GBTC

In a legal sense, GBTC is a trust. This trust makes cryptocurrency investments. In other words, you can buy its shares using your broker account or investment broker. However, it is not the same as you purchasing Bitcoin. Rather, you're counting on Grayscale to make a Bitcoin purchase on your behalf.

They ended up serving as the Bitcoin transaction's middleman. By doing this, you avoid the hassle of purchasing BTC via a cryptocurrency exchange like MEXC. Usually traded on open or over-the-counter markets, the GBTC retail index. In exchange, Grayscale Institutional Trust stores the genuine Bitcoin.