search
Homeweb3.0Grayscale Bitcoin Trust ETF: A Proven Millionaire Maker That's Still Worth Buying

Cryptocurrency is becoming increasingly common in investing circles and is arguably an asset class worth including in any long-term portfolio.

Grayscale Bitcoin Trust ETF: A Proven Millionaire Maker That's Still Worth Buying

Cryptocurrency is becoming increasingly common in investing circles and is arguably an asset class worth including in any long-term portfolio. But crypto is still a Wild West of sorts; there are seemingly endless options, few regulatory guardrails, and highly public instances of fraud that taint crypto's reputation.

The Grayscale Bitcoin Trust ETF (GBTC 5.18%) is a spot Bitcoin exchange-traded fund (ETF) that addresses many of those concerns.

It's also a proven millionaire maker; a $10,000 investment at the trust's inception in mid-2015 would be worth over $1.2 million today. Originally traded over the counter, the ETF was uplisted to the New York Stock Exchange this year.

Can investors still buy in and expect substantial returns? Here is what you need to know.

Understanding the crypto behind the ETF

You must understand Bitcoin if you're considering owning Grayscale Bitcoin Trust ETF shares. Unlike most ETFs, which typically contain many stocks grouped under one ticker symbol, Grayscale Bitcoin Trust solely invests in Bitcoin. The ETF's value reflects the value of the Bitcoin it holds. In other words, the ETF offers investors a convenient and regulated way to invest in Bitcoin without worrying about owning or securing it themselves. It's like the easy button to invest in Bitcoin.

So, why invest in Bitcoin?

Besides its remarkable investment returns over the years, Bitcoin is the world's first cryptocurrency and addresses a fundamental problem in the U.S. monetary system today: inflation.

The United States backed the dollar with gold until 1971. Since then, the amount of U.S. dollars circulating in the economy has dramatically increased. As more dollars enter the economy, the buying power of a single dollar weakens. In other words, it costs more dollars to buy the same goods and services.

Bitcoin works the opposite way by design. Thanks to halving events, the amount of Bitcoin in circulation grows slower over time and ultimately stops at a maximum supply of 21 million coins. Ideally, more people will hold and use Bitcoin over time, which increases its demand. Rising demand and a fixed supply should increase Bitcoin's price over time.

There are clues that Bitcoin is gaining traction in society. More merchants accept it as payment; some corporations even hold it on their balance sheets as an alternative to cash. Do you think these trends will continue? If so, having some Bitcoin or Grayscale Bitcoin Trust ETF in your portfolio could be for you.

Pros and cons of investing in the ETF

Next, how do you decide whether to own Bitcoin outright or through the Grayscale ETF?

Frankly, it boils down to some simple choices. Those who want to invest in Bitcoin must choose whether they want the responsibility of owning Bitcoin themselves or paying for the convenience of owning the ETF instead.

Investors can buy Bitcoin on cryptocurrency exchanges and hold it there, but even the most prominent exchanges have run into trouble and even fraud. You can buy Bitcoin and store it on physical devices called cold wallets, but you risk losing the device or the unique password required to access your Bitcoin.

An estimated 7.8 million Bitcoins have been lost, effectively removing them from circulation. The Grayscale Bitcoin Trust is a regulated entity that securely stores all of its Bitcoin in physical storage. Owning shares of the ETF dramatically reduces the risks associated with owning Bitcoin yourself. It's as easy as buying shares, just like any stock.

Just remember, there is no free lunch. The ETF charges a 1.5% expense fee for its services, which means it will never perform as well as Bitcoin itself. The money paid to fees depletes your investment compounding.

Is Grayscale Bitcoin Trust ETF a millionaire maker?

Despite the fees, the Grayscale Bitcoin Trust ETF can absolutely be a millionaire maker. Some professional investors, like Ark Invest CEO Cathie Wood, believe Bitcoin's price could rise from $68,000 to $3.8 million by 2030. That's one person's guess, but it underlines that nobody knows how high Bitcoin could go in the long term.

That said, investors should keep their expectations grounded and err on the conservative side. Bitcoin's price will ultimately depend on how society adopts it and how much it drives up demand for it.

Therefore, investors should consider Bitcoin and Grayscale's Bitcoin Trust ETF as speculative investments. They can add upside as part of a diversified portfolio. Besides, if Bitcoin's future resembles anything like its past success, you won't need much exposure to make a significant impact.

The above is the detailed content of Grayscale Bitcoin Trust ETF: A Proven Millionaire Maker That's Still Worth Buying. For more information, please follow other related articles on the PHP Chinese website!

Statement
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Lido Finance Proposes New Governance Model to Address Decentralization and AccountabilityLido Finance Proposes New Governance Model to Address Decentralization and AccountabilityMay 12, 2025 am 11:14 AM

Lido Finance's new proposal seeks to address the decentralization and accountability in the Ethereum staking ecosystem.

Lido Finance Proposes LIP-28 to Decentralize Governance and Give Veto Rights to stETH HoldersLido Finance Proposes LIP-28 to Decentralize Governance and Give Veto Rights to stETH HoldersMay 12, 2025 am 11:12 AM

This proposal aims to prevent any party from monopolizing the protocol's development, which is crucial because Lido controls a substantial amount of Ethereum's stETH.

MIRO, a Layer 2 payment platform powered by Bitcoin, has entered into a partnership with ENIAC NetworkMIRO, a Layer 2 payment platform powered by Bitcoin, has entered into a partnership with ENIAC NetworkMay 12, 2025 am 11:10 AM

It is possible that this partnership can significantly change the course of Web3's foundation because both projects aim at reforming the direction of blockchain development

As the crypto market regains steam in 2025, investors are zeroing in on assets with momentumAs the crypto market regains steam in 2025, investors are zeroing in on assets with momentumMay 12, 2025 am 11:08 AM

Render (RNDR), Solana (SOL), XRP, and the explosive newcomer, BlockDAG. Each project is delivering performance

Ruvi (RUV), a New Blockchain Ecosystem, Leverages AI to Disrupt the MarketRuvi (RUV), a New Blockchain Ecosystem, Leverages AI to Disrupt the MarketMay 12, 2025 am 11:06 AM

Avalanche (AVAX), a blockchain ecosystem known for its lightning-fast transaction speeds and scalability, continues to ride a wave of momentum.

Dogecoin (DOGE) Futures See Strong Bullish Sentiment as 75% of Traders Go Long on BinanceDogecoin (DOGE) Futures See Strong Bullish Sentiment as 75% of Traders Go Long on BinanceMay 12, 2025 am 11:04 AM

In a notable shift of sentiment, a significant majority of traders on Binance Futures are currently betting on Dogecoin ($DOGE) to rise in value.

Goldman Sachs Doubles Down on Bitcoin With $1.4B IBIT HoldingsGoldman Sachs Doubles Down on Bitcoin With $1.4B IBIT HoldingsMay 12, 2025 am 11:02 AM

According to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC), Goldman Sachs has significantly increased its Bitcoin exchange-traded funds (ETF) holdings

Bring Me The Horizon's Oli Sykes and partner Alissic announce they are expecting twins.Bring Me The Horizon's Oli Sykes and partner Alissic announce they are expecting twins.May 12, 2025 am 11:00 AM

The married couple revealed the news in an Instagram video on Sunday (May 11), which Sykes captioned “dois”, the word for “two” in Alissic’s native Portuguese.

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

Video Face Swap

Video Face Swap

Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

SecLists

SecLists

SecLists is the ultimate security tester's companion. It is a collection of various types of lists that are frequently used during security assessments, all in one place. SecLists helps make security testing more efficient and productive by conveniently providing all the lists a security tester might need. List types include usernames, passwords, URLs, fuzzing payloads, sensitive data patterns, web shells, and more. The tester can simply pull this repository onto a new test machine and he will have access to every type of list he needs.

Dreamweaver Mac version

Dreamweaver Mac version

Visual web development tools

MinGW - Minimalist GNU for Windows

MinGW - Minimalist GNU for Windows

This project is in the process of being migrated to osdn.net/projects/mingw, you can continue to follow us there. MinGW: A native Windows port of the GNU Compiler Collection (GCC), freely distributable import libraries and header files for building native Windows applications; includes extensions to the MSVC runtime to support C99 functionality. All MinGW software can run on 64-bit Windows platforms.

SublimeText3 English version

SublimeText3 English version

Recommended: Win version, supports code prompts!

WebStorm Mac version

WebStorm Mac version

Useful JavaScript development tools