Grayscale Bitcoin Trust Continues Upward Performance Against Main Indexes In 2019
2019 has been a pretty great year for cryptocurrencies so far. As revealed by the Wall Street Journal recently, this meant that the Grayscale Investments’ Bitcoin Trust (GBTC) has outperformed most of the other indexes this year.
So far, the trust has grown in price almost 300%. When we take into account that the Standard and Poor (S&P) 500 index has only risen about 18.7% and that Global Dow is only 12.9% up during this time. This means that these two traditional funds were not able to grow even a tenth of what Grayscale did during the same timeframe.
Grayscale buys Bitcoin directly from over the counter markets using the money bought by its shares, so, as the price of BTC grown up, the fund is seeing some massive returns so far.
The Wall Street Journal has also highlighted the fact that this is not even the first time that Grayscale is doing so well. Obviously, the last time was in 2017 when the crypto mania started to go mainstream for the first time. At the time of that bull run, the price of GBTC was up by 1,391.44%, a number so big that even the current 300% pales in comparison to it.
Grayscale has told the WSJ that it has over $2.56 billion USD in assets invested in BTC right now. The company, which owned by the Digital Currency Group, is seeking only institutional investors, though. Only wealthy investors willing to spend at least $50,000 USD are being accepted, so you are off from the list if you do not have this kind of cash.
Apart from this flagship investment asset, the company has other assets which are based in popular cryptocurrencies such as Ethereum Classic, Litecoin and Zcash. Another option for investors is the Digital Large Cap Fund, which offers a more diversified portfolio.
Each share from the GBTC fund represents 0.00097876 BTC. According to the company, 66% of the new investors are institutions, which is being understood by the managers as the return of the “BTC maximalists”.
If the current trend continues, the GBTC fund will probably be a great investment. BTC still has a lot of space in order to grow from now, so it is obvious that the prices of the fund will go up together.