Grayscale EFTs for Etherium and Bitcoin

Imagine you like cookies (and who doesn’t, right?). Now, there are different kinds of cookies like chocolate chip, oatmeal, or peanut butter.

In the world of investing, there are different “cookies” too, but instead of cookies, we’re talking about cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Now, here’s where it gets fun with ETFs (Exchange-Traded Funds):

What is an ETF?

Think of an ETF like a cookie jar ?? that holds these special cookies. Instead of you having to buy the ingredients (or the cookies) yourself, someone else has already put them in the jar for you.

So, when you buy a slice of that cookie jar (called a share of the ETF), you’re basically getting a tiny bit of whatever cookies are inside it without having to go through all the trouble of baking them yourself.

Now, what about these specific ETFs?

1. BTC ETF (like IBIT) :
• This is like a jar filled with Bitcoin cookies only. Instead of buying and storing a whole Bitcoin yourself (which can be expensive), you can just buy a share of the jar (IBIT), and you get a little piece of Bitcoin that way.
2. ETH ETF (like ETH):
• Same idea, but with Ethereum cookies. The ETF does the work of buying Ethereum and keeping it safe for you. You just buy a slice of the jar (ETH), and now you own a bit of Ethereum.
3. IBIT ETF:
• This is another type of Bitcoin jar. It’s similar to the BTC ETF above but maybe with a different brand or flavor—like how you might get different brands of chocolate chip cookies.

Why use an ETF instead of buying the actual cookies?

• Convenience: It’s easier and simpler, especially if you don’t want to deal with figuring out where to store your cookies (like getting a wallet for your Bitcoin).
• Safety: If someone breaks into your kitchen (hacks your account), they can’t steal your cookies since they’re locked safely in the ETF jar.
• Less messy: You don’t have to worry about crumbs (or the complexities of crypto exchanges).

In short, ETFs are just an easier way to get your hands on some Bitcoin or Ethereum “cookies” without the fuss of buying and managing them yourself!

I Love Bama did an excellent job of explaining ETFS, he did leave out one issue that I think should be addressed.

Fees!!

Please look at fees when making decisions on long term investing in funds like Grayscale BTC (GBTC) which has expense ratio of 1.5%, which does not sound like a lot. But over a long period of time it is a lot.

Most specialized funds like things that invest in certain sectors generally carry much higher fees than what you can get in a passive broad index fund which you can find fees literally zero (FZROX) or 0.03% (VOO).

Generally it is hard to beat the overall market, and fees generally ensure that you will under perform the broad market

I want to say the ETH etf doesnt apply fees to the first 20 billion invested then it goes to .0015 iirc. Not sure if they have reached that mark yet

Both BTC and ETH are recent IPOs.

The only lesson I’ve learned from crypto is that whenever I say to myself “I should really be buying some of that,” it’s already too late.

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The only lesson I’ve learned from crypto is that whenever I say to myself “I should really be buying some of that,” it’s already too late.

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True, which is why i targeted the new IPOs BTC and ETH

Still a LOT of growth potential in the coming years

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The only lesson I’ve learned from crypto is that whenever I say to myself “I should really be buying some of that,” it’s already too late.

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Most people don’t buy until the news starts talking about crypto. It’s well known in the crypto space that by then, it’s time to start selling.

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How much longer will it have to go before dying for you to consider it valid?

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curious to hear his answer as well.

Nacho keys, nacho cheese.