Grayscale Bitcoin Trust (GBTC) Outperforms Gold And Other Assets


  • Grayscale Bitcoin Trust and Bitcoin outperform many other assets in the market
  • Bitcoin continues to expand in the cryptocurrency market attracting larger investors

Investors’ interest in Bitcoin (BTC) continues to surprise the market. Although Bitcoin has fallen around 15% from its recent high close to $13,750, Grayscale Bitcoin Trust (GBTC) has been performing exceptionally well since February this year.

GBTC Performs Positively

Bitcoin has been growing since it bottomed in December 2018. There is a growing enthusiast in the market regarding the future of the space and how Bitcoin could surpass its all-time high in the near future.

The most popular digital asset is currently in a correction mode after reaching $13,750 and dropping to $10,500 just a few hours later. At the moment, there are several analysts that believe that the digital currency could keep falling in the short term as much as 30%. That means that the digital asset could go back to $9,000.

Nonetheless, institutional investors remain excited about the future of the space. This is the case of Grayscale’s Bitcoin Trust that has surged around 300% since February, according to data provided by Forbes.

The over-the-counter investment tool that is backed by bitcoin is currently being traded at around $14 a share. This represents an increase of over 265% in less than six months, as reported by Stock Charts. Meanwhile, during the same period of time, Bitcoin moved from $3,366 to over $11,700 today, representing a massive price increase of 250%.

As Forbes explains, John Dobosz, the editor of Forbes Dividend Investor newsletter, ran a comparison performance of GBTC with other assets during the same period of time, including gold, oil, the U.S. dollar, the S&P 500 and more. Bitcoin has been the best performing asset among all of them, even after the recent correction.

Dobosz commented about it:

“The total gain since that time for the GBTC, which tracks Bitcoin pretty accurately, is up 341%. What comes in second best? You would have been okay with oil, even though oil has eaten dust and other particles in the last few weeks. Oil is up 12.8%.”

Meanwhile, the S&P 500 is up 8.5%, gold is up 7.7%, the iShares MSCI Emerging Markets ETF is up 1.4% and the US dollar is up 1%. At the moment, the GBTC holds more than 1.2% of the total Bitcoin in existence.

Grayscale has also invested in other digital currencies, including Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Stellar Lumens (XLM), Ethereum CLassic (ETC), XRP and Zcash (ZEC). The firm is currently managing $2.7 billion in assets.

In a recent report released by Bloomberg, crypto-related applications are not following Bitcoin’s price increase. Compared to 2018, app downloads remained stable during this year. This suggests that the current price increase in Bitcoin could be closely related to larger investors entering the space.

There are several companies such as TD Ameritrade, the Intercontinental Exchange (ICE) and Fidelity Investments that are working in order to provide crypto-related services to larger investors that want to have exposure to the cryptocurrency space.

Bitcoin is currently being traded around $11,850 and it has a market capitalization of $210 billion. In the last 24 hours, the digital asset grew 0.99%.

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