What it is
The Grayscale Bitcoin Trust (GBTC) is a large closed-end fund that allows investors to gain exposure to Bitcoin without directly buying or storing it. Until its conversion, GBTC shares traded on over-the-counter (OTC) markets, and new shares were created through private placements available only to accredited investors, who then held them for a lock-up period before they could be publicly traded.
GBTC shares historically traded at a significant premium or discount to their net asset value (NAV), driven by supply and demand dynamics in the secondary market. Its successful trust-to-ETF conversion in January 2024, following a court ruling against the SEC, was a landmark event, transforming it into a spot Bitcoin ETF and allowing for daily creation and redemption mechanisms.
Why it matters
GBTC's conversion to an ETF significantly impacted the crypto market, providing more accessible Bitcoin exposure and influencing broader regulatory decisions.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice