At the current price, someone who wanted to invest $100, $500, or even $1,000 in bitcoin couldn t even afford to buy one share of the Bitcoin Investment Trust. I already mentioned that the Bitcoin Investment Trust owns about 0. Could bitcoin trade at an even higher premium. The stock s ticker symbol will remain the same, though, and there is nothing that shareholders need to do to get their additional shares. Historical and current end-of-day data provided by SIX Financial Information. But the shares trade for $1,970, a massive 53% premium to the value of the underlying bitcoins. After all, it s significantly easier to buy a share of an ETF than it is to buy and store your own bitcoin. Specifically, since more retail investors will be able to afford shares, it could cause volume to spike, and could even put upward pressure on the stock. Obviously, as the stock price moves up or down prior to the completion of the split, the post-split value will change accordingly. You re better off just buying bitcoin In addition, it s worth mentioning that the Bitcoin Investment Trust also comes with a 2% management fee, meaning that each year, management gets $20 out of every $1,000 in investment value. 092 bitcoins per share, and based on the current bitcoin price of about $14,000, this means that each share represents bitcoin worth $1,288. The Motley Fool has no position in any of the stocks mentioned. As a result, the stock price will immediately drop by a factor of 91.
There s no effect to the overall intrinsic value of the business. Based on the $1,970 stock price as of this writing (Jan. 15), this implies that each share of the trust will immediately fall to a price of about $21.BitcoinDark.. Essentially, the Bitcoin Investment Trust works like an exchange-traded fund. It s also worth noting that the amount of bitcoin represented by each share of the fund will also decrease by the same factor. In fact, the stock jumped by 12% on the day the news broke, although bitcoin didn t move by nearly as much. Commodity ETFs can be found with annual fees of as little as 0. However, the premium commanded by the fund is way too high for any rational investor to accept. This will make the price of the fund much lower, and make it accessible to many more investors. Intraday data delayed at least 15 minutes or per exchange requirements. .Power Ledger.SALT. Gas.