Has anyone here invested in a private placement with Grayscale Trust? I would be doing this in a tax deferred account. It seems a little too good to me.
You'll be required to hold them for 1 year before selling. http://www.globenewswire.com/news-r...nnounces-Resumption-of-Private-Placement.html From my understanding, if you buy the private placement you get the shares at NAV to the price of bitcoin rather than buying them at a 20-25% premium.
With PP I get the shares at NAV ($18.21 Friday close), instead of at what GBTC closed at ($23.22). With Ethereum it's even better: NAV of $55.62 and stock price of $122.05
If just trading in and out, better to just trade the stocks due to the volatility, buy if BTC really is going much higher, like $100,000 I think the PP is the better route.
can I buy from private placement and hold one year then sell at the secondary market to earn nav discount?
Yes, that is the allure to buy the private placement. Otherwise might as well buy in the open market.
Holy cow! That premium for ETHE! Geez! I could tell it was out of whack so I sold it on Thursday but it bounced back pretty good. There will always be a premium but that is huge!