The price of Bitcoin has fallen from its highest point of US$63,523 on April 14, 2021 (Coinmarketcap data) to US$15,782 on November 12, 2022 (Coinmarketcap data). It has been declining for 577 days, which is the longest bear market in history. This was the first time, with a drop of 75.2%, the fourth largest drop in history.It is very possible that $15,782 is the lowest point of this bear market.The current strategy should be to buy in batchesIf there was an opportunity to buy Bitcoin at a 40% discount, the risk would be smaller and the potential benefits would be greater. Would you be tempted?

Read the instructions below. The prerequisite for buying Bitcoin at a 60% discount is to have a passport.

Number of words: 4747

(Updated on September 18, 2023) Currently, Bitcoin can only be purchased at a 20% discount

The product to buy Bitcoin with 40% off is Grayscale Bitcoin Trust

1. What is Grayscale Bitcoin Trust?

1.1 It is a fund

Grayscale Bitcoin Trust is a fund. Ordinary investors can directly search for GBTC in their brokerage accounts and then conduct transactions.Qualified professional investors can subscribe in US dollars or Bitcoin, and the subscription price is the net value of each share.After the fund receives the funds, it is used to purchase Bitcoins, and the purchased Bitcoins are stored in CoinBase custody.There is a 6-month lock-in period after subscription. It cannot be redeemed after 6 months and can only be traded in the secondary market.

1.2 It is a trust

Grayscale Bitcoin Trust is a commercial trust. Its operation can only be carried out in accordance with the trust agreement and cannot exceed the trust agreement.According to Grayscale Bitcoin Trust Information Statement , its trust activities are limited to the following 6 types:

1. Issue fund shares for purchasing Bitcoin;
2. Sell Bitcoin to pay related expenses of the sponsor and trust;
3. After approval by the US Securities Regulatory Commission and the sponsor, redeem fund shares and transfer out Bitcoin (not approved currently);
4. When the trust terminates, the sponsor sells the Bitcoins and accompanying forked coins;
5. Distribute or sell the forked coins attached to Bitcoin;
6. Participate in all administrative and security procedures necessary to complete such activities as the Trust Agreement, Custody Agreement, Index License Agreement and Participant Agreement

1.3 What are its advantages?

1.3.1 Bitcoin can reduce the risk of investment portfolio

According to Grayscale FAQ , Digital currencies have many unique qualitiesBecause digital currencies are borderless, fungible, and easy to use, they can be a great way to diversify your investment portfolio Additionally, due to these unique qualities, digital currencies have historically been uncorrelated with other, more traditional asset classes such as stocks and bondsIn a market environment of geopolitical uncertainty and volatility, investors may benefit from uncorrelated asset classes

Correlation refers to the degree of correlation between two variables. The maximum is 1, which means strong correlation, 0 means no correlation, and the minimum is -1, which means strong negative correlation.According to statistics, the correlation coefficients between Bitcoin and 1,400 ETF funds are mostly between -0.1 and 0.1, indicating that Bitcoin is not correlated with 1,400 ETF funds.

The correlation between Bitcoin and 1,400 ETF funds

1.3.2 Grayscale Bitcoin Trust provides an easier way to access Bitcoin

To hold Bitcoin indirectly through the Grayscale Bitcoin Trust, you only need to have a brokerage account and buy the Grayscale Bitcoin Trust Fund.If you hold Bitcoin directly, you need to use a computer or mobile phone to download Bitcoin wallet software or use a hardware wallet, remember 12-24 mnemonics, have an account at a Bitcoin exchange, buy Bitcoin, and transfer to Bitcoin Wallet, complicated proceduresIt is troublesome to remember and back up the mnemonic phrase, because once the mnemonic phrase is forgotten, the Bitcoins will be lost and cannot be retrieved. Therefore, the safest way is to remember it with your brain, and secondly, copy it down with paper or card and back it up. Several copies are kept in several safe safes. The third is to use lead plates to spell out the mnemonic words, and several backup copies are kept in several locked drawers.

According to Grayscale FAQ , Buying and holding tokens directly means you must set up a digital wallet to purchase and store your digital assetsOur products provide investors with a simple way to acquire digital assets without having to spend time and effort storing and guarding itAs with certain other retail investments, investors can quickly and easily buy and sell the shares of their investment, rather than the time required to directly manage the tokens Certain Grayscale products may be accessed in brokerage accounts and certain tax-advantaged accounts (e.g., IRA, Self-Directed IRA)

1.3.3 Grayscale Bitcoin Trust is more secure

Grayscale Bitcoin TrustThe purchased Bitcoins are hosted by CoinBase custody company, stored in cold wallets (wallet software or hardware that is not connected to the Internet), and are kept by professionalsCoinBase Custody is a subsidiary of CoinBase (COIN), a publicly traded company regulated by the New York State Department of Financial Services.

1.3.4 Grayscale Bitcoin Trust is Guaranteed

Grayscale Bitcoin Trust is an independent trust company. It has a trust agreement, a custody agreement, a participant agreement, etc. to regulate the behavior of relevant parties. Among them, there are clauses prohibiting borrowing, lending and pledging Bitcoin to protect the There is minimal human risk with Bitcoin

1.3.5 Grayscale Bitcoin Trust is more transparent

Grayscale Bitcoin Trust is regularly audited by an accounting firm. It is a reporting company registered with the U.S. Securities and Exchange Commission and is available on the OTC trading website and U.S. Securities and Exchange Commission information disclosure website Regularly and irregularly publish relevant reports, including audit reportsCustodian CoinBase also regularly discloses the number of Bitcoins it holds.

According to CoinBase's publicly disclosed report on November 18, 2022, as of September 30, 2022, CoinBase held 635,235.84358745 Bitcoins for Grayscale Bitcoin Trust

Grayscale Bitcoin Trust Custodian coinbase



Grayscale Bitcoin Trust Custodian Number of Bitcoins available

2. Why can I buy Bitcoin with a 40% discount?

Grayscale Bitcoin Trust is a publicly traded investment product. The information circulation speed on the Internet is very fast. Why can it be traded at a 60% discount for a long time?

2.1 Product design leads to low liquidity, leading to discounted transactions in bear markets

According to the article "Grayscale Bitcoin Trust Fund appears at a substantial discount and risks are highlighted" , there are three main reasons for the deviation between price and net value:

First, this kind of trust fund product is only available to qualified investors and is traded over the counter (OTC), with low liquidity.

The second is The product design of Grayscale Bitcoin Trust stipulates that after the lock-up period, subscribers cannot redeem fund shares at the net value and can only trade fund shares at the market price in the secondary market. Therefore, The only supplier of fund shares is the fund holder, which is relatively single. The quantity supplied depends on the willingness of the holder.If in a bull market, holders are more willing to hold than to sell, so the supply quantity is small and the demand is relatively large, so the market price of the fund will exceed the net value, generating a premium.In a bear market, holders are more willing to sell than to hold. Therefore, the supply is larger, but the demand is smaller.

Third, it is the only Bitcoin spot product traded in the U.S. Pink Sheets market (OTC market). The trading volume in the Pink Sheets market is also small. Therefore, in a bear market, the market price of the fund will be lower than the net value, resulting in a discount.

2.2 Bad news leads to record discount

According to the article "The first "black swan" in the currency circle is coming in 2023! 630,000 Bitcoins may be wiped out" , the digital currency lending platform Genesis may go bankrupt. Genesis's parent company is Digital Capital Group (DCG), Grayscale Investment Company is also a subsidiary of DCGThere are rumors in the market that the bankruptcy of Genesis will lead to the bankruptcy of DCG. In order to save itself, DCG will dissolve Grayscale Investment Company and sell off the 630,000 Bitcoins held by Grayscale Investment Company.If DCG dumps Bitcoin, the market will plummet

So, affected by the bad news, the market price of Grayscale Bitcoin Trust is 40% lower than the net value. Therefore, buying Grayscale Bitcoin Trust is equivalent to buying Bitcoin at a 60% discount.

The negative premium of Grayscale Bitcoin Trust reached 42%



The reason why the negative premium of Grayscale Bitcoin Trust reached 42%



Grayscale Bitcoin Trust Market Price and Net Value

3. Can the price of Grayscale Bitcoin Trust return to normal levels?

3.1 Rumors about the dissolution of Grayscale Bitcoin Trust are unrealistic

Grayscale Bitcoin Trust is a commercial trust and is protected by the U.S. Uniform Trust Code promulgated in 2000The Uniform Trust Code merges and unifies the previous Uniform Prudent Investor Act, Uniform Wills Act, Uniform Trustee Powers Act, and Uniform Trust Act.

Review of the U.S. Uniform Trust Code 1


The relationship between the U.S. Uniform Trust Code and related laws

According to the U.S. Uniform Trust Code 410-414 on the termination of trusts According to the terms, the trust can be terminated only in the following 7 situations:

1. With the consent of the principal and all beneficiaries;
2. The court believes that trust survival is not the only way to achieve the substantive purpose of the trust, and all beneficiaries must agree;
3. The trust assets were squandered, and the squandering was not the substantive purpose of the trust;
4. In the above 1 and 2, although not all beneficiaries agree, it is approved by the court;
5. Due to unforeseeable circumstances of the trustor, if the termination of the trust will help achieve the substantive purpose of the trust, it must be approved by the court;
6. The trust assets are less than $50,000, and the trustee believes that the value of the trust assets is insufficient to cover the management costs;
7. The court determined that the value of the trust assets was insufficient to cover administrative costs;

Uniform Trust Code - Termination of Trust Section 410ab

Uniform Trust Code - Termination of Trust Section 410cde

Uniform Trust Code - Termination of Trust Section 411ab



Uniform Trust Code - Termination of Trust Section 411cde


United States Uniform Trust Act - Termination of Trust Section 412


United States Uniform Trust Act - Termination of Trust Section 414

And rumors assume The parent company of Grayscale Investment Company is about to go bankrupt and does not meet the above 7 situations.Therefore, it would be impractical to dissolve the Grayscale Bitcoin Trust

Cathie Wood, CEO and founder of AKR Investment Management, also said that Grayscale Bitcoin Trust is the crown jewel of DCG, the most valuable part and a cash cow, and they will try their best to keep it it

Grayscale is currently the most valuable part of DCG

3.2 Historically, the price of Grayscale Bitcoin Trust has been at a premium level for a long time

Historically, the price of Grayscale Bitcoin Trust has been at both discounts and premiums, and the premium period has been longer, a total of 2115 days from May 7, 2015 to February 19, 2021. Experienced 2 bull markets and 1 bear marketThe discount period is relatively short, a total of 700 days from February 20, 2021 to January 20, 2023, and experienced a bear marketSee the figure below for details. The purple line is the premium rate and the coordinate axis is the right axis.Therefore, it is expected that when the Bitcoin market enters the next bull market, the price of Grayscale Bitcoin Trust will reach normal levels and enter the premium stage.

Grayscale Bitcoin Trust Premium History 2015-5-7


Grayscale Bitcoin Trust Premium History 2021-2-19


Grayscale Bitcoin Trust Premium History 2023-1-20

3.3 Large, medium and small investment institutions have been holding Grayscale Bitcoin Trust

As of the fourth quarter of 2022, institutional investors held a total of 24.5276 million shares of Grayscale Bitcoin Trust, accounting for 3.5% of the total outstanding shares of 692.37 million shares.

The number of institutional holdings of Grayscale Bitcoin Trust

Among the holding institutions, there are many well-known institutions such as Blockfi, Morgan Stanley, and AKR.

Holders of Grayscale Bitcoin Trust

Moreover, AKR Investment Company increased its holdings of Grayscale Bitcoin Trust three times in November 2022. This is since July 2021 first time since

AKR has been bargain hunting Grayscale Bitcoin Trust

4. How to buy Grayscale Bitcoin Trust

For Chinese investors, purchasing Grayscale Bitcoin Trust requires the following 2 conditions:

1. Scientific Internet access;
2. Have a passport;

For Chinese investors, the more suitable brokerage is FirstradeBecause the Hong Kong branch of domestic brokerage firms and Interactive Brokers prohibit Chinese investors from trading Grayscale Bitcoin TrustFirstrade is a relatively large compliant Internet brokerage in the United States, with a Chinese interface and Chinese customer service.After being asked by email, Firstrade does not prohibit Chinese investors from trading Grayscale Bitcoin Trust.

Firstrade cash rebate


Remittance fee subsidy


Firstrade investment varieties


Firstrade's advantages - direct and transparent prices


Firstrade's advantages - account security


Firstrade's advantages - Chinese customer support


Can Chinese users trade Grayscale Bitcoin Trust


Firstrade does not prohibit Chinese users from trading Grayscale Bitcoin Trust

4.1 Scientific Internet

4.1.1 Purchase Thousand Needles Network Package

I have been using Bailing Network for 3 years. It is relatively stable and fast. Occasionally, I cannot access it for 2-3 days during sensitive periods.Click Bailing Network

Select a one-month package and click "Go to Purchase"I chose the 15 yuan monthly package


Select the region and click "Order Now"


Select the payment cycle, check the order information, and click "Continue"


Confirm the information, fill in your email address, password and contact QQ, and click "Complete Order"

If you operate on a computer, use Alipay on your mobile phone to scan the QR code and pay.If you operate on a mobile phone, just take a screenshot, use Alipay to scan the QR code of the screenshot, and pay

Scan the QR code to pay

After completing the payment, return to the user center and click "Tutorials and Software"

User Center

Under the V2 User Manual column, select the Clash client download address and graphic tutorial corresponding to Windows, Android, IOS, Mac and other operating systems.I use the Clash client, which has simple functions and is easy to use.

Client User Manual


In the Clash Windows client, click Proxies-Global, scroll down and select "Automatic selection"

clash proxy settings


If you use the 360 ​​browser on a Windows computer, you also need to click on the three horizontal lines in the upper right corner - Tools - Proxy Server - Use IE Proxy set up

360 Browser Proxy Settings


In the Clash Android client, click "Stop" to start, click "Proxy", and then click "Select Route" Click "Automatically select"


Clash Android proxy settings


So that you can surf the Internet scientifically

4.2 How to open an account with Firstrade?

Account opening is divided into the following 8 steps:

1. Fill in your email address;
2. Verify email address;
3. Log in;
4. Upload passport;
5. Fill in identity information;
6. Fill in income and investment experience information;
7. Fill in the password;
8. Sign the agreement

ClickFirstrade official website

Click "Open an Account Now"

Fill in your name and email address

Verify emailCopy the verification code in your email, paste it into the verification code input box, and click "Submit Verification"

Verify email address


Fill in the username and password on the homepage and click "Log In"

Log in

Upload passport photo for identity verification

Upload passport identity verification

This picture shows uploading ID card, which has been changed to uploading passport.

Fill in the identity information and write down the full English name, which will be used when depositing money.

Complete identity information


Fill in income, assets, investment experience and other information

Fill in income information


Fill in password information

Fill in the password information

Sign the agreement

Sign the agreement


Account opening is successful, write down the account number and use it when depositing money

Account opened successfully




4.3 How to deposit and withdraw money?

The easiest way to deposit money is wire transfer. You need to transfer money from your own bank account with the same name to your Firstrade account, and note your account code and full English name.

Inject funds into the firstrade account




The simplest way to withdraw funds is by wire transfer, and withdraw the money to your own bank account with the same name.

Wire transfer withdrawal
4.4 How to trade?

You can trade through the web or mobile terminalThe mobile phone supports Apple and Android operating systems

firstrade mobile trading




The securities code of Grayscale Bitcoin Trust is GBTC, and the transaction process is not much different from that of ordinary securities firmsPlease pay attention to the rules of T+1 trading. Some transactions of the same security on the same day are called intraday offsetting transactions and will be punished with a 90-day trading limit.

90-day limit on cash accounts