During a recent interview, billionaire investor\u00a0Mike Novogratz\u00a0shared his latest thoughts on Bitcoin, and in particular he talked about Grayscale Bitcoin Trust (GBTC) and why it is a bad deal for U.S. retail investors in comparison to a Bitcoin ETF.<\/p>\n
Former hedge fund manager Novogratz is the Founder and CEO of\u00a0Galaxy Digital, \u201ca diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector.\u201d<\/p>\n
His comments came during iConnections\u2019 2021 Global Alternatives Conference, where he had a conversation about Bitcoin with Russell Barlow, Global Head of Alternative Investment Strategies at Aberdeen Standard Investments.<\/p>\n
Although Canada has recently approved two Bitcoin ETF, the U.S. SEC still has not approved one (despite proposals by various camps), and for those investors who want a Bitcoin product that they can invest in via tax shelters such as a 401(k)\u00a0account, until January 15 \u2014 when the Osprey Bitcoin Trust\u00a0(OBTC) became quoted in the OTC market \u2014 the only game in town was the Grayscale Bitcoin Trust (GBTC). <\/p>\n
However, Novogratz thinks that the U.S. SEC will soon realize that a Bitcoin ETF would be a much better Bitcoin investment vehicle for U.S. retail investors and that it will become very hard for it to resist approvng one:<\/p>\n
\u201cThe biggest owner of Bitcoin in the world is the Grayscale Trust, right. It\u2019s a closed-end fund run by Barry Silbert\u2019s group. It is a brilliant piece of business. They have $25 billion worth of Bitcoin. They charge 2% annual fee. Plus, they make money on the way trading in. Most of that money comes from people putting Bitcoin in their fund, so borrowing Bitcoin, putting it in their fund, seasoning it for six months, and then getting shares of the trust.<\/em><\/p>\n