Bitcoin Investment trust in next 5 year.
If you are looking for the Bitcoin Investment Trust then you must be searching for the price prediction of the bitcoin in the coming future. But predicting something that volatile is not possible. The reason behind is that it is not going to survive in the coming next 5 years. Chances are a grayscale investment which sponsors it will shutter it down.
What is Bitcoin Investment Trust?
With the craze of the bitcoin, not only people but also companies are investing in it. This gives you the opportunity to invest in the bitcoin in another way. At present, the trust is holding a substantial amount of bitcoin which is more than 200,000 bitcoins. When you will buy those shares you will be buying the 0.001 bitcoin.
Grayscale Investment trust, sponsor of Bitcoin investment trust, will be charging you on the annual basis for the management of those funds. It has the ability to liquidate the assets to get the fee. This is the reason each share of the trust will be equivalent to the decreasing amount of the bitcoin.
The benefit of Bitcoin investment trust
When you are buying bitcoin from the exchange you have to go through a lengthy process of buying, maintaining, selling them. But this is not the case when you buy the shares of the bitcoin investment trust. As they will be doing all the hectic work of
- Obtaining the bitcoin tokens
- Holding them for the safekeeping
- Making future transactions if there is a requirement.
So you can say that investing in the bitcoin investment trust is as easy as investing in a share market.
Another benefit of investing in it is that you will be holding both bitcoins and the stocks at the same time. And for that, there is no need for you to pay an extra fee. You will not be able to find this type of facility in any exchange. As they do not provide you facility of stock trading, forcing you to have two accounts and manage them separately which can be a difficult task to do.
Disadvantages of Bitcoin investment trust
The problem with the bitcoin investment trust is that it does not show the actual price of the bitcoin. It means that when you are holding its share you will be getting the information regarding the share price, not the bitcoin.
Due to this will be impossible for you to know how much profit you will be getting when you liquidate those assets. Another problem is that there is a huge gap between the price of the bitcoin and the share and chance of getting them close will be impossible.
Giving bitcoin investment trust a pass
It will be better for you if you give the bitcoin investment trust a pass. As they are paying more than 30% premium to its own shares which is quite a lot. You can have a better opportunity by investing in the bitcoin ETFs which has a better opportunity in the coming future.
So to sum up the whole article we can say that if you are looking to invest in the bitcoin investment trust then you should not. This is because it does not have a better future and you will be losing your money.