Share-split context: A forward split was recorded on Jan 29, 2018 with coefficient 91. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

Understanding GBTC (Grayscale Investments LLC)

What this ETF is trying to do

GBTC is an ETF managed by Grayscale Investments LLC. Based on its top holdings, this fund provides exposure to Bitcoin through the Grayscale Bitcoin Mini Trust (BTC), which makes up 12.55% of its reported holdings.

What the numbers show

The performance data for GBTC shows different results depending on the time frame you look at. Because this ETF has a history of forward splits, the price returns provided are split-adjusted. This means the historical prices have been adjusted so that past performance can be compared fairly to today's price.

• Year-to-Date (YTD): The YTD price return is approximately -5.81%.

• One-Year: The one-year price return is approximately -32.48%.

• Three-Year: The three-year price return is approximately 210.61%.

• Five-Year: The five-year total return is approximately 54.97%.

In this case, the price returns and the total returns are the same because no distributions were paid.

Income and distribution explanation

GBTC does not currently pay out regular income to investors. The data shows a distribution yield of 0% and no distributions were detected over the last 12 months. Because there are no payouts, this ETF is not designed to provide cash income.

NAV erosion explanation

The fund has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration and a weak erosion score. Specifically, the fund has an erosion score of 30, which is labeled as "Significant price erosion."

It is important to understand the difference between price erosion and NAV erosion. Price erosion refers to the decline in the market price of the ETF shares. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Pros

• Strong Long-Term Price Growth: Looking at a three-year window, the split-adjusted price return was very high at approximately 210.61%.

• Significant Five-Year Returns: The five-year total return stands at approximately 54.97%.

Cons

• Recent Price Declines: The ETF has seen a share-price decline of approximately 32.48% over the last year.

• High Erosion Risk: The fund carries a severe erosion-risk flag due to significant price deterioration.

• No Income: There are no distributions or dividends provided for investors seeking regular cash flow.

Beginner takeaway

GBTC has shown very high growth over a three-year period, but it has also experienced significant price declines in the last year. It is currently flagged with a severe erosion-risk warning due to its price trends. Additionally, since it does not pay distributions, investors should not look to this ETF for regular income.