Bitcoin or GBTC? How to decide …


  • Thanks to a popular investment fund called GBTC, buying Bitcoin is easy as purchasing stock.
  • With GBTC, your Bitcoin is held securely and is not accessible to be used as a payment currency.
  • GBTC can be an excellent buy for the casual investor who doesn’t want to trade cryptocurrency on an exchange (but intends to purchase Bitcoin).

We’re often asked, “Can I invest in Bitcoin at Stockpile.” The answer is YES! Thanks to a popular investment fund called GBTC, it’s as easy as purchasing stock.

The Grayscale Bitcoin Trust (GBTC) is a fund that holds over a billion dollars’ worth of Bitcoin for investors. Due to the high price of Bitcoin, it is less and less frequent for individuals to own a whole Bitcoin, much less several. Each share of the GBTC corresponds to ownership in 0.00100567 worth of a Bitcoin. 

If you’ve done some research on cryptocurrencies, you may have heard of a company called Coinbase. Coinbase offers a platform to buy and sell Bitcoin and includes an online wallet. Online wallets enable you to send and receive Bitcoin but also come with additional security risks. If you use an online wallet, it’s paramount that you secure your account as best as possible. That’s because hackers who manage to break into your online wallet portal can steal your Bitcoin and siphon them into accounts controlled by them. And then there are blockchain failures and simple mistakes to watch for, both of which can cause Bitcoin to be lost permanently. For example, Bitcoin will be lost if you send it to the wrong recipient wallet address. Since Bitcoin transactions are irreversible by design, security against theft needs to be a top priority for investors.

With GBTC, your Bitcoin is custodied securely on your behalf and is not accessible to be used as a payment currency like it is at Coinbase. That’s a pretty significant trade-off for those who aren’t looking to use Bitcoin to make or receive payments but instead wish to hold it as an investment. The GBTC professionally handles common Bitcoin pitfalls for investors and makes tax reporting more straightforward as well.

Both the Grayscale Bitcoin Trust (GBTC) and exchanges such as Coinbase have their pros and cons when it comes to Bitcoin investment and ownership. We know that investing in cryptocurrency can be new and unfamiliar, but that is why we are here to help and inform. If you’d like to invest in fractional shares of GBTC, click here!


Stockpile, stocks by the dollar

Article Contributor: Mark Biwojno


This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stockpile assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell. There is no guarantee that any strategies discussed will be effective. Each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services and should seek advice from an independent advisor before acting on any information presented.

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