Mar. 27, 2022
Gentlemen, I am writing to you concerning the conversion of Grayscale GBTC from a trust to a spot bitcoin ETF. The current situation is very damaging to investors because the trust fees are 2% , which is quite high and the current 20 to 30 percent discount from NAV has been damaging to investors - I personally have suffered a 33% loss in capital of my GBTC investment in Vanguard, while my bitcoin (BTC) investments have made money during the same time frame. Bitcoin is up 5% one day, while GBTC is up 1% ; Bitcoin is down 2% one day, while GBTC is down 4 % ; some days bitcoin is up and GBTC is down; how can an investor make any sense out of these Alice-in-Wonderland price moves. It seems as if the NAV discount gets larger each month. Before I invested in GBTC, the largest NAV discounts I had noticed were in the range of 8 to 10 percent - never in my wildest dreams did I think the discount could reach 20-30 percent! Frankly, the current GBTC situation is horrible for investors ! The conversion of GBTC to a spot bitcoin ETF would give much greater clarity to investors - at least we would have some idea of what we are getting into - I knew the 2% fee was high for GBTC , but I had no idea that the ever-widening discount of GBTC would be so destructive to my investment. Dennis Bourgerie, Normal, Illinois , USA