What is the Bitcoin Investment Trust?
The Bitcoin Investment Trust, or BIT, is one of the first securities with which Bitcoin could be invested and allows cryptocurrencies, such as Bitcoin, to be publicly traded. From this security, the price of Bitcoin can be derived.
However, the fees should be noted, since they inevitably reduce the price gain. With the BIT, investors have a tool in their hands to speculate with Bitcoins without having to own them.
The BIT shares are publicly listed on OTCQX®, thus, Bitcoins can be acquired or sold at market rates. The service is under the Alternative Reporting Standards.
Risk assessment of the Bitcoin Investment Trust (BIT)
A purely private security and thus not controlled by any regulatory authority, the risk should be considered high. The BIT is not registered via SEC and investment is, therefore, highly speculative.
Investors can expect high profits, but should also expect the total loss of deposits. Therefore, only funds that, in the case of total loss, can’t negatively affect one’s own standard of living should be used.
The assets are held in XAPO Bank accounts and are registered in XAPO Vaults. The protection is provided by multi-signature codes, which are cryptographically secured private keys.
The BIT has been trading since September 15, 2013. One share currently represents the equivalent of 0.09211978 BTC. There are currently 1,868,700 such shares.