Shorting Bitcoin Via The Bitcoin Investment Trust (GBTC)

After pulling all my money out of Crypto a few days ago, I figured why not take the other side of the trade and the name of this site. I figured the best way to directly play this on the short side was thru shorting the Bitcoin Investment Trust (GBTC).

The benefits in shorting GBTC in this case is not only Bitcoin falling, but speculators of this bid this up way higher than the NAV. NAV is essentially for simple purposes the true underlying value of the Bitcoins held by GBTC and is set after the close each day. Although something can certainly stay ahead of its NAV, in a totally efficient market it should trade exactly at its NAV which gives them room to fall even if say Bitcoin stayed flat.



Unfortunately my broker, Schwab, didn't have any shares available to short. I could give them a call to see if I could borrow some and what the fee is, but my guess is you either can't short them or I am just too late to the short game. I am not that interested in shorting either. I generally prefer to short thru puts as then you limited your downside. Shorting something like Bitcoin, could leave you with unlimited losses although your broker would cut you off and pull the short from you if things got really nasty. I'll leave the phone call for another day now I have better things to do with my time.


No shares available to short on Schwab


That's it. Were you able to short bitcoin? If so leave a comment below. If you still don't have COINBASE account, here is a link that gives you $10 off your first purchase. For those that want a physical BITCOIN to act as a fidget spinner, stocking stuffer, or gag-gift here they are available to purchase on Amazon.

Comments