Are GBTC And Bitcoin ETFs Safe?

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In this video, I discuss the Grayscale Bitcoin Trust (GBTC), as well as Bitcoin ETF's like BITO, BITI, and BTCC.

GBTC could be a good investment if the price of Bitcoin remains constant or goes up, assuming that the discount doesn't widen, and also assuming that the discount contracts enough to offset the 2% annual management fee. That being said, you are still heavily reliant on Grayscale's operations, Coinbase Custody, and Coinbase Custody's insurers.

BITO and BITI are futures-based ETFs, and as such are subject to weird contango effects. Holding BITO exposes you to large negative carry, while BITI exposes you to Bitcoin melt-up risk.

BTCC is a Canadian Bitcoin spot ETF. Like other products, it offers you "paper Bitcoin" or a "Bitcoin IOU." There is counter-party risk and custodian risk, which you can avoid by buying BTC itself and holding it in cold storage.

Not investment advice! Consult a financial advisor.

Grayscale Bitcoin Trust (GBTC):

GBTC discount on Bitbo:

GBTC discount/premium chart:

Grayscale suing SEC:

Coinbase Custody:

BITO ETF:

BITI ETF:

Bitcoin futures settlement prices:

BTCC ETF:

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[Bitcoin_University]

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[Lakeland]

Not your keys not your coins people. Get control of your future wealth

[fowchiiiliedpuppiesdied]

Thanks for being one of the good guys.

[lou]

A very succinct and accurate summary. Good work.

[RyanHoguePassiveIncome]

Incredible video, thank you, this was great

[djombock]

Dang Matt!!! Do you ever take a day off!?!?!? Keep up the awesome work!!!!

[tomshalev]

You are on spot here with your risk analysis on GBTC just short months before its starting to collapse 👌

[willtomorrow]

Thanks for covering this. Going to have to watch this a few times to wrap my head around it.

[TheRealFutureMillionaire]

I currently have almost 600 shares of GBTC in my Roth IRA. So hope it work out long term.

[grandadcrypto]

bitcoin futures carry morgin. There is options on Bito so I use it to hedge using the options.

[Actuary]

There isn’t a single “insurer” in the financial markets that has properly matched assets to liabilities. Hello AIG.

[GHOST]

Always appreciate your insight Mr. Matt
Happy Independence Weekend Sir 🇺🇲
Stay Safe and Enjoy...

[PeeedaPan]

Why can't a pension fund just buy Bitcoin without the use of a Bitcoin ETF?

[Chuck-beed]

So if you have an IRA and have strong Bitcoin conviction what other options does one have other than GBTC? Microstrategy? Marathon? Withdraw and take crushing Tax hit? The GBTC discount is appealing especially if you are long Bitcoin and think Gensler will approve Spot ETF. No?

[drhubblebubble]

Very informative Matt. I don't understand the obsession with owning paper.

[SeanS]

At 5:58 I thought you were about to say “That’s a really high fucking fee” but obviously Matthew Kratter never swears

[Au]

Hey Matt, I’m trying to fully understand what MicroStrategy did to finance their BTC purchases, but I’m missing a few foundational pieces of knowledge. Perhaps a video topic to look into for the future. You could extend the topic to be more about how US companies take out debt to finance their business operations, etc.

[kennethbarr]

Hi MATT We Are Looking At A 0 Sum Game And When It Revertes In 0 Pluss, YES?

[Whatisfreedom]

Went to a football game today, to learn how to be relaxed in bear market

[ldrumhel]

I'm too simple, Matt. I routinely invest a set amount of US dollars into BTC and forget about it while taking the, "not your keys, not your bitcoin" wisdom to heart.