Source: Sina Finance and economics can invest in gray bitcoin trust with only U.S. stock accounts. Bitcoin’s recent rise has attracted a lot of attention from outside the currency circle. Recently, Xiaobian has frequently received questions from investors: bitcoin has risen so much, where should I buy it? Some investors know that they can go to the digital currency exchange to buy bitcoin, but they are afraid of security incidents such as the exchange running away, manipulating the market and stealing coins. Some traditional investors don’t know the basic knowledge of bitcoin trading such as private key and public key, but they want to share the profits of bitcoin’s rise. This paper introduces the famous gray bitcoin trust (GBTC) and gray Ethereum trust (ETCG). Although these two names are already familiar in the currency circle, they may still be unfamiliar to traditional investors who have never invested in bitcoin. In fact, traditional investors only need a U.S. stock account and enter the code of GBTC or ETCG. Gray bitcoin trust and gray Ethereum trust track the changes of bitcoin price and Ethereum price. Traditional investors can obtain the profits from the rising prices of bitcoin and Ethereum without going to the digital currency exchange. So how does gray bitcoin trust and gray Ethereum trust work? What is the difference between buying GBTC and ETCG with US stock account and buying bitcoin and Ethereum directly from digital currency exchange? To understand this, we must first understand how these two products are established. Gray bitcoin trust is essentially a private trust fund. Gray bitcoin trust (GBTC) is the largest encrypted digital asset trust product under grayscale, and its scale accounts for more than 90% of the total gray scale asset management scale. In essence, GBTC is a private trust fund, which made its first private placement in 2013, and does not regularly open subsequent primary market subscription. Gray encryption Trust shares are issued in strict accordance with the private placement process, only qualified investors can participate. According to the definition of U.S. law, “qualified investor” here refers to an individual or entity with net assets (excluding housing) of not less than $1 million, or annual income of $200000 (or annual income of husband and wife of $300000). This is too high a capital threshold for most ordinary investors. In March 2015, GBTC began to conduct public trading on the US otcqx exchange, officially announcing that the shares of GBTC private trust funds were registered in the secondary market, and public investors could participate in it. Ordinary investors can also buy shares of GBTC in U.S. stock accounts. It is worth noting that gray scale charging 2% escrow fee for bitcoin trust is also its main way to make profits. The collection method is to deduct the amount of bitcoin held, that is, the management fee is charged in the currency standard way. According to the statistics, according to the current asset management scale, grayscale charges about 7000 bitcoin per year. It should be noted that the gray bitcoin trust is not a bitcoin ETF, although it is raised and circulated in a way similar to ETF. In fact, bitcoin ETF is still illegal in the United States. The securities and Exchange Commission has rejected several applications for bitcoin ETFs on the grounds that bitcoin prices can be manipulated. Bitcoin ETFs are expected to be approved by the US Securities and Exchange Commission because it will attract more traditional investors from outside the currency circle, and more incremental capital will drive up the price of bitcoin. Gray bitcoin trust costs more, but it is more convenient. As mentioned above, the gray scale bitcoin trust foundation charges 2% of the trusteeship fee, which is about 7000 bitcoins a year, and is still rising with the expansion of its scale. This determines that the cost of buying a gray bitcoin trust fund is higher than buying bitcoin directly. Nevertheless, GBTC is still very popular. (for details of bitcoin premium, please refer to okex research: solving the mystery of high premium of gray Fund). If you buy GBTC directly in the U.S. stock market, investors can buy and hold bitcoin in a simplified and safe way without learning threshold. While enjoying the investment opportunities brought about by the high volatility of bitcoin price, it is simply the most convenient way for traditional investors to invest bitcoin without having to bear some risks that may exist in self trading bitcoin: 1. There is a risk of information leakage when opening an account on the digital currency trading platform: every day, you may receive harassment calls from fake customer service providers of major trading platforms, even your personal data Personal privacy has been stolen or illegally used. 2. Buying and selling bitcoin on the digital currency trading platform has the risks of price manipulation, withdrawal restriction and “running away” in the exchange. Opacity is a common fault of centralized platforms. 3. Storing bitcoin has the risk of losing and stealing the private key of wallet. Moreover, gtbc operates in a way similar to stocks and bonds, providing tax convenience for investors and easy transfer to beneficiaries under the estate law. The operation mode of gray Ethereum trust is the same as that of gray bitcoin trust. Traditional investors only need to purchase ETCG in American stock accounts, and they can also share the profits from the price rise of Ethereum, the second largest cryptocurrency.