Category Archives: Grayscale Bitcoin Trust

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Institutional Interest Causes Bitcoin to Surpass Oil, Gold

Institutional Interest Causes Bitcoin to Surpass Oil, Gold

As Bitcoin price enters a temporary pullback, retracing from incredible heights over the past week to settle around 15% less from its recent highs, it has still managed to outperform other investment assets like oil and gold, who have themselves been enjoying a renaissance in valuation this year.

Institutional investment and continued interest are said to be responsible for this, with funds like the Grayscale Bitcoin Trust (GBTC), which has surged more than 300% since February, a prime example of this.

It seems, regardless of the short term outlook with the flash crash and ongoing correction, big backers and investors with deep wallets and old money are not put off. Added to this, over the counter (OTC) bitcoin backed security is now trading at around USD 14 per share, whereas several months ago they were not even at USD 4. This same period has only seen a 220% gain in Bitcoin price, but this difference is attributed to the high premiums that funds charge institutional investors to ensure they do not directly hold Bitcoin.

Forbes Dividend Investor newsletter editor, John Dobosz, notes that GBTC has completely trumped other traditional investments such as gold, oil, the S&P 500, including several various tech ETFs. He explained:

“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%.”

6/28/19 UPDATE: Holdings per share, net assets under management and digital assets per share for our investment products.

Total AUM: $2.7 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/uMC6VFMfMm

— Grayscale (@GrayscaleInvest) June 28, 2019

The reason Grayscale was used, according to the report, was that it was the only publicly-quoted US-based investment product and alone held more than 1.2% of all Bitcoin in circulation.

 

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Bitcoin Sets Sights on $9,000 as Gold, Penny Stocks Piggyback

Bitcoin Sets Sights on ,000 as Gold, Penny Stocks Piggyback

As Bitcoin continues to show inexhaustible rallying pushes this week, gold has quietly hit its highest point since April (USD 1,298.26 an ounce, spot price), while penny stocks are capitalizing on the Bitcoin buzz.

Early Thursday trading in Asian markets saw a renewed push for Bitcoin to break resistance levels at USD 8,200, although as Europe began to wake up, price tapered back towards its current levels just above USD 8,000.

The bulls will take its ability to keep yesterday’s gains as a good sign of strength, however, and will still be confident of yet another consolidation before another run towards USD 9,000. One Winklevoss brother certainly feels that this is only the “bottom of the first inning”:

Bitcoin breaking 8k this time feels lot different than the last time. So much progress has been made since then and it’s only the bottom of the first inning! 🚀👍

— Tyler Winklevoss (@tylerwinklevoss) May 16, 2019

Not to be outdone, self-exiled US Presidential candidate John McAfee reminds people that crypto markets are not stock markets and traditional maths cannot be applied:

The more Bitcoin drops in price, the greater the upward acceleration when the downward pressure fizzles out. Remember – the Crypto market is NOT the stock market. It is a new paradigm. Old formulas cannot be applied, and traditional math is impotent when peering into crypto. pic.twitter.com/ReBRT8yYBe

— John McAfee (@officialmcafee) May 13, 2019

Speaking of traditional stocks, penny stocks in North American markets have definitely been enjoying Bitcoin’s stay in the limelight, with stocks like MGT Capital Investments rising as much as 15% on Tuesday when it announced a resumption of Bitcoin mining operations. Others also piggybacking on Bitcoin’s rally include cryptocurrency-related Riot Blockchain Inc, Marathon Patent Group Inc, and Grayscale Bitcoin Trust BTC, which all outperformed the market on their own comebacks.

 

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GrayScale Investments Hoists Bitcoin in #DropGold Campaign

GrayScale Investments Hoists Bitcoin in #DropGold Campaign

Digital currency and crypto asset management firm Grayscale Investments LLC has launched a new campaign calling for Bitcoin to replace gold as a store of value in the new global digital economic model.

The #DropGold campaign was unveiled with a TV commercial, which has now gained over 88,000 views on Twitter in the past day. In the commercial, corporate workers are seen abandoning physical bars of gold, dumping the heavy metals and running away, presumably to get Bitcoin.:

Today we unveiled our #DropGold TV commercial. We think it’s a #MustWatch

sound ON! pic.twitter.com/SEGAmMItsE

— Grayscale (@GrayscaleInvest) May 1, 2019

In a statement to Forbes, Grayscale claims that the new campaign is advocating for “investment portfolios to reflect that bitcoin has become digital gold for today’s forward-thinking investors.”

Barry Silbert, founder and CEO of Digital Currency Group and its subsidiary Grayscale Investments, said:

“There is a generational shift in how individuals are approaching investing. We strongly believe that investments in gold will be reallocated to bitcoin as Baby Boomers begin transferring their wealth to a younger generation of investors, one that wasn’t raised on the gold standard. The gold industry has done a fantastic job of marketing an overpriced metal but bitcoin has superior physical properties and market utility.”

Grayscale Investments managed the publiclly quoted Grayscale Bitcoin Trust, which today holds around 1.2% of the entire world’s Bitcoin in circulation.

 

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