Discussion about this post

User's avatar
Hamoshi's avatar

It's worth noting that the 2% management fee is based on NAV. In effect the management fee is nearer 4%

Expand full comment
John Horst's avatar

Excellent... As a cyber security business owner, I'd like a little more detail on the security concerns, but they sound reasonable on the surface... BUT, if they hold their coins on Coinbase and NOT via a cold wallet, this really bothers me: "To be perfectly clear: these digital assets are owned by GBTC and GBTC alone."

This sounds like a lawyerly way to talk around counterparty risk. With FTX we are about to find out for sure whether someone's coins on a public exchange can be confiscated by the Bankruptcy court to pay creditors. This is exactly the possibility Coinbase warned about in a recent filing. If a public exchange enters bankruptcy and the coins "owned" by GBTC (or anyone else) can be confiscated in favor of secured creditors, then there is counterparty risk and a public exchange is no different than a legacy bank...

All of this is building my case for the Digital Liberties Amendment. (https://digitallibertiesamendment.com)

QTR: Shamless plug: I am working on a post about this... Cross post? Have me on your podcast?

Expand full comment
28 more comments...

No posts