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Fund Spy

The Problems With the World’s Biggest Bitcoin Fund

Grayscale Bitcoin Trust opened the floodgates but is structurally inadequate.

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Investors’ interest in Bitcoin has risen commensurate with its price. Quickly chasing that sentiment is Wall Street, with a legion of products meant to satisfy investor demand. We’ve explored the problems with futures-based exchange-traded funds like ProShares Bitcoin Strategy ETF (BITO), but the industry’s largest Bitcoin-adjacent product faces issues of its own. Grayscale Bitcoin Trust (GBTC) carries a whopping 2.00% price tag and, more notably, can sometimes fail to precisely track the price of Bitcoin because of its limitations as a trust. Both of these factors have led to large differences between the returns of the trust and the returns of Bitcoin itself.

Bobby Blue does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.