can someone explain to me why the ETF is more attractive to investors than the GBTC? like why is this a bigger deal than the GBTC listing?
Discussion
Many suits are comfortable trading ETFs / are only allowed to trade certain types of instruments like ETFs according to their fund rules.
GBTC is a non-redeemable trust with really high 2% fees.
Main difference is that Grayscale is a closed-end fund, meaning it's hard to sell shares of them if you should want to. ETF stands for exchange-traded fund, so it's listed on one or more stock exchanges and trades more or less instantly. This leads to more liquidity and less deviation from the underlying Bitcoin price.
Also cost - GBTC is ~1.5%, ETFs around 0.25%
Tax treatment.
one was over the counter and not a formal listing so it is just a technical change in addition to the ability to track the net asset value better
it's a social signal for establishment types that bitcoin is now acceptable for wall street normies
probably also something about regulated institutions not being to access grayscale, MSTR, or (god-forbid) use an unhosted wallet 😱
1) Holds peg better (less likely to have a discount/premium)
2) Lower costs
If insiders like blackrock and Invesco get bitcoin ETFs approved by SEC normies will basically take that to mean bitcoin is officially approved.
Of course it's the biggest Trojan horse in human history.. 😀😀😀
Better create/redeem process so that BTC price is better tracked. Also, lower fees , GBTC was 2% and ETFs are around 0.25%.
Grayscale is trying to uplist the ETP, into an ETF, so there will be no difference.
https://www.grayscale.com/crypto-products/grayscale-bitcoin-trust#block-1792
IIRC you can exit GBTC only at expiry date, while the ETF is like and spot product.
