February 11, 2022
Many retail investors like me bought GBTC with insufficient knowledge of how a closed end fund functions, and wrongly assumed that the price of GBTC would follow the underlying asset. Like many people, I was in shock when I saw the premium go from 10% to -25%, making my position drop even though my investment thesis for BTC was sound. I cannot understand that the SEC, which is supposed to PROTECT investors, is preventing GBTC to convert to an ETF. The SEC has provided Wall Street investors with futures ETFs that allow them to profit from trading, but retail investors who invest in these products will lose money, just as I did. Opposing GBTC to convert to an ETF is destroying the wealth of retail investors. Meanwhile, the existence of BTC ETFs in Canada demonstrates that this position is not justified.