There is good news for investors wishing to enter into the Grayscale Bitcoin Trust. The fund, which periodically pauses on new investments, opened up its doors for new investors eyeing its digital asset trusts on 12 January 2021.
This time it’s quite convenient for new investments considering that Bitcoin’s price has levelled out at $35,000 after dropping from $41,000 to $30,000 on 11 January 2021. The pleasant news continues. Grayscale Bitcoin Trust valued its assets at approximately $20 billion as of yesterday making it a worthwhile investment on your end.
The Grayscale Bitcoin Trust is a platform for institutional investors in the United States to familiarize themselves with Bitcoin. Apart from knowing that the fund is a private, open-ended trust regulated by the Securities and Exchange Commission, investors need to expose themselves to other vital information before investing in the fund.
Firstly, Investors ought to know about the already mentioned period pauses for new investors that the company applies. Any eying investor needs to be on the lookout for when Grayscale is open for new investors. The most recent pause started on 21st December 2020. However, the pauses do not apply to existing investors as they can continue to buy shares in the trust.
Beforehand, it is also essential to know that your investment will have to undergo a six-month lock-up once you invest in the Grayscale Bitcoin Trust. This means that as an investor, you cannot sell your shares on the secondary market for at least six months of investment.
The Grayscale Bitcoin Trust reopening indicates a new commencement of the six-month lock-up period for the new investors who will use this opportunity. Investors should be on the lookout for the end of this period as analysts have alleged that a higher spot market will emerge at the end of the six months as Grayscale’s shares start being traded on the open market.
With this information, new investors can hop on this opening, invest, and start counting the days to the end of the six months.