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GBTC is a business trust that can be redeemed through dissolution by votes from owners
GBTC is not a ponzi scheme
Grayscale is the Trustee and can be voted out
You can vote on a lower management fee
A hedge fund can short bitcoin futures, then buy up or convince a majority of GBTC owners to dissolve the trust fund. The bitcoin comes out to the owners of the trust. The hedgefund can dump the bitcoin on the market, profit on their short position and decimate the bitcoin price.
Actually the discount in GBTC is a gift to someone short bitcoin futures-- they can get more bitcoin by buying up discounted shares, more shares to then dump on the market.... creating an even juicier incentive.
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By critical_thinking_brainGBTC is not a ponzi scheme
Grayscale is the Trustee and can be voted out
You can vote on a lower management fee
A hedge fund can short bitcoin futures, then buy up or convince a majority of GBTC owners to dissolve the trust fund. The bitcoin comes out to the owners of the trust. The hedgefund can dump the bitcoin on the market, profit on their short position and decimate the bitcoin price.
Actually the discount in GBTC is a gift to someone short bitcoin futures-- they can get more bitcoin by buying up discounted shares, more shares to then dump on the market.... creating an even juicier incentive.