Investing

Bitcoin long term investing - QBTC.TO Fund, GBTC Trust, BTCQ ETF

  • Last Updated:
  • Jul 25th, 2021 7:23 pm
[OP]
Jr. Member
Oct 21, 2017
176 posts
18 upvotes

Bitcoin long term investing - QBTC.TO Fund, GBTC Trust, BTCQ ETF

If you buy a bitcoin fund like GBTC (Grayscale Bitcoin Trust) or QBTC.TO (The Bitcoin Fund CAD), do you lose a lot of gains via tracking errors compared to buying the actual BTC coin?

QBTC.TO April 9, 2020 - July 23, 2021: 387% gain
GBTC: April 9, 2020 - July 23, 2021: 263% gain
BTC USD April 9, 2020 - July 23, 202: 377% gain

3iQ CoinShares Bitcoin ETF (BTCQ) CAD: new ETF created in March 31, 2021

Questions
  1. How come GBTC gain is so far behind from QBTC?
  2. What's the difference between a bitcoin trust, bitcoin fund, and bitcoin ETF?
  3. Can the bitcoin trust, bitcoin fund, or bitcoin ETF lose your money from hacking like Bitcoin exchanges getting hacked or run away with your money?
  4. If you are buying the actual Bitcoin instead, is it safe to hold your money long term in a huge exchange like Coinbase, Robinhood, or Wealthsimple?
  5. Where can I find the MER for those symbols? Seems hard to find online.
1 reply
Member
Dec 3, 2019
356 posts
306 upvotes
Ontario
Tracking error in managed Bitcoin products will come from:
1. If they track Bitcoin by investing in it directly.
2a. If they track Bitcoin by investing in futures
2b. How the futures are rolled over. Monthly, bi-monthly. All or partial rollover.
3. Currency. Is the product priced in USD or CAD. Is USD hedged back to CAD.

You can go to their website and look at holdings to see which is which. The MER should be relatively easy to find on the website as well. With these crypto products the tracking difference mostly comes from underlying holdings not MER.


The rest of your questions I don't know.

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