Despite the fact that after a sharp rise, the price of Bitcoin faced an inevitable correction, having lost almost 17% in recent days, investment funds show very good dynamics. A striking example of the growth of institutional interest in cryptocurrency is the Grayscale Bitcoin Trust (GBTC), whose shares have increased by more than 300% since February.
According to the Forbes report, at the moment GBTC shares are trading at about $ 14 per unit, although five months ago they were offered $ 3.84 for them. The price of bitcoin for the same period increased by 220%.
Such a discrepancy is due to the fact that GBTC shares are offered to institutional investors at a higher price than the market rate. At the same time, they are eliminated from the need to directly hold an asset.
At the same time, as Forbes Dividend Investor editor John Dobosh points out, GBTC outperformed not only Bitcoin itself, but also such investment tools as gold, oil, the S & P 500 index, and various ETFs.
“During this period, the profitability of GBTC, which tracks the price of Bitcoin very accurately, increased by 341%. What we have in second place? You may be pleased with oil, although in recent weeks it has fallen in price. Oil [over this period] grew by 12.8%, ”he writes.
At the same time, the index over these five months grew by 8.5%, gold – by 7.7%, iShares MSCI Emerging Markets ETF – by 1.4%, Invesco QQQ index for technology companies by 1.7%, and the dollar United States – only 1%.
Grayscale Bitcoin Trust is the only investment product in the US that is trading on exchanges in Bitcoin and today has more than 1.2% of the total first cryptocurrency issue.
According to Grayscale Investments itself, which, in addition to Bitcoin, invests in Ethereum, Bitcoin Cash, Litecoin, Stellar, Ethereum Classic, XRP and Zcash, the total assets under its management as of June 28, 2019 was $ 2.7 billion.
Recall that last week Barry Silbert, part of the holding of Digital Currency Group, launched Grayscale Investments Ethereum Trust, the third such tool after Bitcoin and Ethereum Classic.