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Playing the Grayscale Game

Ty YoungDec 16, 2020 ⋅ 9 min read

Grayscale has grown into a behemoth since its creation in 2013. The investment firm’s flagship product, GBTC, currently holds 2.5% of the circulating supply of bitcoin and is the closest thing this industry has to a bitcoin ETF. We have written in the past about the mechanics of Grayscale products but will dive deeper into why institutions and traders play “The Grayscale Game".

What are Grayscale Products

Grayscale Investments is an investment company that specializes in cryptocurrency funds. Through Grayscale, investors can purchase Bitcoin (GBTC), Ethereum (ETHE), and other digital asset trusts, including Bitcoin Cash, Ethereum Classic, Litecoin, Stellar Lumens, XRP, Horizen, and ZCash.

Owning Crypto vs. Grayscale

Grayscale products are not the same as directly owning cryptoassets. For example, GBTC is an investment trust which buys and secures Bitcoin on an investor's behalf. When an investor buys GBTC, they are buying shares of the Grayscale trust.

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Ty Young

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