Grayscale’s Bitcoin Stock Most Actively Traded Security on OTC Markets

Bitcoin’s monster rally from $3,200 to $13,800 was also reflected in Grayscale’s Bitcoin-based security GTBC and the security was one of the most actively traded on the OTC markets.


Greyscale Tips the Scales

Yesterday Grayscale proudly announced that its Bitcoin Trust stock (GBTC) is ranked amongst the most actively traded securities on over-the-counter (OTC) markets in June.

As of today, there are more than 10,000 securities offered on OTC markets and 1,430 trade on the OTCQX and OTCQB premium tiers. By the end of June 2018, only eight securities on both tiers had transacted more than $1 billion in volume and GBTC was amongst the list.

GBTC traded $4 billion worth of shares over the first 6-months of 2019 and was the only digital asset-based security among the pack of eight that traded more than $1 billion in volume. Even more encouraging is that Grayscale debuted twice on the OTCQX. Grayscale’s Ethereum Classic Trust (ETC) came in 7th place with a June trading volume of $122,722,000. 

Get the Gains Without the Pain

GBTC is designed to provide Bitcoin exposure to investors looking for an easier and more secure method to invest in the digital asset. Investors need not worry about custody, hacks, cold wallets and registering with cryptocurrency exchanges as Grayscale handles all the rigorous work. The security is also attractive to institutions and fund managers as the shares can be held in an IRA, Roth IRA and other brokerage accounts. 

To date, the security has returned 36.74% over the past 12-months and 7,157.14% since inception. GTBC also incurs a 2% annual fee and the security often lags behind Bitcoin price action as it only trades Monday – Friday and not 24-7 like Bitcoin.

 

A notice on Grayscale’s homepage informs investors that GBTC is currently closed as it is only “offered on a periodic basis throughout the year”. Investors are encouraged to investigate the Grayscale Digital Large Cap Fund as it is comprised of 80% Bitcoin. 


Do you think Grayscale’s record trading volume are a sign that institutional investors are leading the current Bitcoin bull market? Share your thoughts in the comments below! 


Image via Shutterstock, Grayscale Investments, Twitter: @GrayscaleInvest

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