What's Going On With Grayscale And iShares Bitcoin ETFs?

Grayscale Bitcoin Trust GBTC and iShares Bitcoin ETF IBIT shares are trading higher Monday as Bitcoin reaches all-time highs. 

The Details:

Shares of the newly minted Bitcoin ETFs are trading higher Monday as the recent rally in Bitcoin continues with the price of Bitcoin breaching the $72,000 mark. Inflows to the funds and the growing acceptance of cryptocurrencies as an investment have contributed to the recent crypto rally. 

The spot Bitcoin ETFs have seen strong net inflows, and the nine ETFs now hold more than 4% of the total circulating Bitcoin supply.  According to data from SoSoValue, total net inflows into Bitcoin spot ETFs on March 7 reached a staggering $472 million and total net asset value of Bitcoin spot ETFs surpassed $54 billion. 

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How To Buy IBIT Stock:

By now you're likely curious about how to participate in the market for iShares Bitcoin ETF – be it to purchase shares, or even attempt to bet against the ETF.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of iShares Bitcoin ETF, which is trading at $41.38 as of publishing time, $100 would buy you 2.42 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

GBTC, IBIT Price Action: According to Benzinga Pro, Grayscale Bitcoin Trust shares are up 4.8% at $64.86, and iShares Bitcoin ETF shares are up 5% at $41.53 at the time of publication.

Image: Sittipong Phokawattana on Shutterstock