The Grayscale Bitcoin Trust (GBTC) is one of the earliest and most prominent investments designed to provide investors with exposure to Bitcoin (BTC). Launched in 2013, GBTC was the first spot Bitcoin exchange-traded product to begin trading in the US, although the trust was only available to institutional and accredited investors. In January 2024, along with ten other funds, Grayscale was approved to operate GBTC as a spot bitcoin ETF.
GBTC – Grayscale Bitcoin Trust ETF Price and Chart
The shares were originally offered via a private placement, but in mid-2015, they began trading publicly on OTC Markets under the ticker symbol GBTC. This continued until 2024, when, as mentioned, GBTC was uplisted to NYSE as a spot Bitcoin ETP.
GBTC is managed by Grayscale Investments, a digital asset management firm, and its shares are still publicly traded under the ticker GBTC. Each share of GBTC represents a fraction of Bitcoin held in the trust, with the value closely tied to the market price of Bitcoin.
As of early 2025, the trust holds approximately $20.06 billion in assets under management (AUM).
GBTC – Grayscale Bitcoin Trust ETF Performance
| Year | Performance |
|---|---|
| 2024 (YTD) | +145.16% |
| 2023 | 317.61% |
| 2022 | -75.8% |
| 2021 | 7.03% |
| 2020 | 290.72% |
Bitcoin Forecast
Bull Argument: According to Tom Lee, co-founder of Fundstrat, in a November interview with Wealthion, Bitcoin could hit $250,000 next year. Lee noted that the Bitcoin halving, which happened earlier this year, has resulted in “the sweet spot of that price gain.” He adds that the supplies cut that started to happen towards the end of this year and then into next year have supported why his firm expected Bitcoin to be $100,000 and then $250,000 over the next 12 months. “I think something over 250,000 possible, but maybe highly probable based on just this following this price cycle,” commented Lee.
He adds: “The second reason I think Bitcoin has maybe more upside than that is because the new administration is running, has run on a pro Bitcoin platform. And I think that the possibility of the US not only legitimizing Bitcoin, but make making it a strategic reserve asset, I think raises the raises what would be the possible price scenarios for Bitcoin.”
Meanwhile, Standard Chartered said before the US election that they had a $125,000 target on Bitcoin if Trump won.
Bear Argument: While bearish views on Bitcoin are currently scarce, Jamie Coutts, chief crypto analyst at Real Vision, said in a thread on X (Twitter) in early December that “Bitcoin has hit new ATHs in the face of a deteriorating liquidity backdrop,” and that “if conditions worsen, the rally, while euphoric, can only last for a limited time.” While Coutts is bullish over the long term, he states that his analysis of the macro and liquidity dashboard tools he uses “shows unequivocally sustained bearish momentum for most metrics.”
Our View: The Grayscale Bitcoin Trust (GBTC) is a pioneer in cryptocurrency investing. However, while GBTC offers significant convenience and regulatory oversight, investors should weigh the pros and cons against other Bitcoin ETFs, such as the iShares Bitcoin Trust ETF.
For example, its fees are higher than competitors. GBTC charges an annual management fee of 1.50%, higher than other Bitcoin ETFs. As a result, its fee structure could erode returns. This would be especially true in a bear market. As a result, it may be considered a less cost-effective option for investors looking for a Bitcoin ETF to invest in.
Who Should Buy the Grayscale Bitcoin Trust ETF?
Of course, it is clear that GBTC and other Bitcoin ETFs are ideal for long-term Bitcoin investors. Those who believe in Bitcoin’s long-term value as a digital asset and are comfortable with the short-term volatility.
In addition, more traditional market participants who prefer exposure to Bitcoin through regulated financial markets without managing digital assets directly, may also find GBTC more attractive.
Investors looking to add Bitcoin exposure as a non-correlated asset to their portfolios may also want to look at GBTC.
However, GBTC may not suit cost-conscious investors as those seeking lower expense ratios may prefer other Bitcoin-focused ETFs.
Furthermore, risk-averse investors may see Bitcoin’s inherent price volatility as a risky choice.
