Hi,
some weeks ago, I've started a new challenge, where I present some of the companies that I follow for a buy&hold.
The companies need to fulfill over 70% of my criteria to even land in here.
This are:
- are they going to be around in 25 years
- are they market leaders
- does the company expand or invest in research
- does the company have a solid board
- can the company recover if it is hit by a scandal or recession
- was ROI over 3% in the past 10 years
- shall not be in a communist state
For today, I want to present you a different type of stock. It is an investment fund, where private investors invest in some assets that are traded than at the stock exchange as common share.
One of this funds comes from a company that invests mainly in crypto. It is called Grayscale Investments LLC. Yes, it is an LLC that has funds traded on the stock exchange. The fund that I look at, is the GBTC, or better said the Grayscale Bitcoin Trust.
Why I'm looking at it? Because it is massive! It has over 500000 BTC in it. The shares gives the buyer a portion of it. It is a share on BTC basically. Yes, one can buy BTC directly and in most cases is cheaper. It can be that shares are traded at a discount, but very unlikely.
But than why even look at it? Because the GrayscaleBitcoin Trust allows people to gain exposure to Bitcoin without having to worry about anything else, from wallets to filling taxes in different assets. In countries where BTC is not legal, you can get a share of it by investing in a fund.
Summarize, it helps people invest in BTC without the hustle, which makes it more reachable for people who have money but not a strong technical background.
It does not fulfill all my criteria, but this would be a flip not a buy and hold. I would not buy it, as I buy directly. It is only worth to watch it as it brings BTC and crypto to the masses, the masses that have the means to invest larger chunks into it.
Would you buy it?
I'm not a financial analyst or professional, so what I write here is not an advice and shall be seen as a personal view.