Frequently Asked Questions

Ethereum Classic Investment Trust (ETC)
What is the Ethereum Classic Investment Trust™?
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The Ethereum Classic Investment Trust (“ETC Trust”) is an open-ended trust that is invested exclusively in ETC and derives its value solely from the price of ETC. Modeled after Grayscale’s Bitcoin Investment Trust, the ETC Trust was created for investors seeking exposure to ETC through a traditional investment vehicle.

Why should I own shares of the Ethereum Classic Investment Trust over purchasing outright ETC?
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Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell ETC must transact via newly-established, unregulated exchanges or intermediaries. This often requires investors to transmit funds to geographies where they might not be comfortable. In addition, storing ETC on one’s own can add additional headaches, as the private keys (the ETC equivalent of passwords) which ensure access to an investor’s ETC can be susceptible to loss or theft. This potentially exposes one’s ETC position to partial or total loss, often with limited or no recourse to regain access to the ETC.

In contrast, by investing in Ethereum Classic Investment Trust shares, investors avoid the challenges of purchasing and storing ETC on their own and instead, pass these tasks to Grayscale and the Trust’s service providers, while maintaining their exposure to the price performance of ETC. The Ethereum Classic Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of ETC can be challenging. Few digital asset exchanges and order books can reliably fill orders of $10,000 or more without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. The ETC Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions, and create shares for investors at a blended daily average price based on the TradeBlock ECX Index.

Titled, Transferable, and IRA Eligible

In contrast to directly owning ETC, shares of the Ethereum Classic Investment Trust are titled securities, similar in structure to other unregistered common stocks and bonds that investors may own. With a structure that is familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Ethereum Classic Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts.

What are the Ethereum Classic Investment Trust’s fees?
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The Ethereum Classic Investment Trust charges an annual administration and safekeeping fee of 3.0%, which accrues daily.

In order to promote growth and development of the Ethereum Classic Network, the Sponsor intends to direct up to one-third of the annual management fee (or an annual rate of 1% of the daily ETC Holdings of the Trust) towards initiatives that support development, marketing, and other community efforts for the first three years of the Trust’s operations.

For further details on the ETC Trust’s fees, please review our Private Placement Memorandum.

How is the Ethereum Classic Investment Trust’s ETC Holdings calculated?
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The ETC Trust’s ETC Holdings is calculated and published each business day at 4PM EST. The ETC Holdings calculation is based off of TradeBlock’s ECX Index, taking into account a trailing 24-hour VWAP across the major ETC exchanges. For further details on how the ETC Trust’s ETC Holdings is calculated, please review our Private Placement Memorandum.

How are the ETC underlying Ethereum Classic Investment Trust shares safeguarded?
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The ETC Trust’s assets are maintained with Ledger SAS., as Key Maintainer, in deep cold storage vaults. The ETC maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in the Ethereum Classic Investment Trust?
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Shareholders generally will be treated, for U.S. federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of the Trust’s income and proceeds, and directly incurred their pro rata share of the Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard.

Prospective and current investors should consult their financial and/or tax advisors prior to investing.

Bitcoin Investment Trust™ (BIT)
What is the Bitcoin Investment Trust™?
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The Bitcoin Investment Trust™ is an open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. Modeled on the popular SPDR Gold ETF, the Bitcoin Investment Trust was created for investors seeking exposure to bitcoin through a traditional investment vehicle. The Bitcoin Investment Trust is publicly quoted on OTCQX®, the top tier operated by OTC Markets, under the ticker: GBTC.

Why should I own shares of the Bitcoin Investment Trust™ over purchasing outright bitcoin?
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Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell bitcoin must transact via newly-established, unregulated exchanges or intermediaries. This often requires investors to transmit funds to geographies where they might not be comfortable. In addition, storing bitcoin on one’s own can add additional headaches, as the private keys (the bitcoin equivalent of passwords) which ensure access to an investor’s bitcoin can be susceptible to loss or theft. This potentially exposes one’s bitcoin position to partial or total loss, often with limited or no recourse to regain access to the bitcoin.

In contrast, by investing in Bitcoin Investment Trust shares, investors avoid the challenges of purchasing and storing bitcoin on their own and instead, pass these tasks to Grayscale and the Trust’s service providers, while maintaining their exposure to the price performance of bitcoin. The Bitcoin Investment Trust’s assets are safeguarded by a robust security system, using industry leading security standards. The system’s underlying protocols are state of the art, designed by experienced security, financial, and technology professionals, and are overseen by a financial operations principal. The Bitcoin Investment Trust’s financial statements are audited annually by Friedman LLP.

Cost Effective Order Fulfillment

Purchasing large orders of bitcoin can be challenging. Few bitcoin exchanges and order books can reliably fill orders of $25,000 or more without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. The Bitcoin Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions, and create shares for investors at a blended daily average price based on the TradeBlock XBX Index.

Titled, Transferable, and IRA Eligible

In contrast to directly owning bitcoin, shares of the Bitcoin Investment Trust™ are titled securities, similar in structure to other unregistered common stocks and bonds that investors may own. With a structure that is familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Bitcoin Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts.

What are the Bitcoin Investment Trust’s fees?
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The Bitcoin Investment Trust™ charges an annual administration and safekeeping fee of 2.0%, which accrues daily. For further details on the Bitcoin Investment Trust’s fees, please review our Disclosure Statement.

What is the difference between purchasing shares directly from the Bitcoin Investment Trust as opposed to purchasing Bitcoin Investment Trust shares trading on OTCQX®?
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Qualified accredited investors are eligible to directly invest in the Bitcoin Investment Trust and purchase shares at the daily NAV. Shares purchased directly from the Bitcoin Investment Trust are restricted and subject to significant limitations on resale and transferability. Conversely, investors may choose to purchase eligible Bitcoin Investment Trust shares on OTCQX® under the ticker: GBTC at the applicable market price. These securities have been deemed freely tradeable under SEC Rule 144 and are not subject to restrictions on resale or transferability once purchased.

How is the Bitcoin Investment Trust’s NAV calculated?
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The Bitcoin Investment Trust’s NAV is calculated and published each business day at 4PM EST. The NAV calculation is based off of TradeBlock’s XBX Index, taking into account a trailing 24-hour VWAP across the major bitcoin exchanges. For further details on how the Bitcoin Investment Trust’s NAV is calculated, please review our Disclosure Statement.

Can I purchase Bitcoin Investment Trust shares in my retirement account?
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Grayscale Investments has received approval from a variety of retirement account service providers who can help to facilitate an investment in the Bitcoin Investment Trust™ through the ongoing private placement. Currently, these include: PENSCO, Entrust, Millennium, Equity Institutional, IRA Services, Madison Trust, and Midland IRA. If your IRA or retirement account provider is not listed, please inquire with the Grayscale team.

Most IRA providers will allow you to purchase publicly quoted Bitcoin Investment Trust shares via OTCQX® under the ticker: GBTC. Please contact your IRA provider if you have any questions related to purchasing publicly available shares of the Bitcoin Investment Trust™.

How are the bitcoin underlying Bitcoin Investment Trust shares safeguarded?
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The Bitcoin Investment Trust’s assets are stored with Xapo, Inc., as Custodian, in deep cold storage vaults.  Bitcoin stored in the Xapo Vaults reside on multisignature addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in the Bitcoin Investment Trust™?
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Shareholders generally will be treated, for U.S. federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of the Trust’s income and proceeds, and directly incurred their pro rata share of the Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard.

Prospective and current investors should consult their financial and/or tax advisors prior to investing.

What is an accredited investor?
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An accredited investor, in the context of a natural person, includes anyone who either earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR, has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).