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GBTC Trades 60% Over Current Bitcoin Price

Avatar Gautham 4 years ago

The Bitcoin community across the world is currently witnessing the rise of Bitcoin for the second consecutive week now. Bitcoin price has increased by from somewhere around $450 per bitcoin to close to $600 per bitcoin in the past two weeks. The upward movement of bitcoin value has increased confidence on the digital asset among investors.

The increased confidence is not only visible in the trade volumes of the digital currency across various exchanges but also in the current demand for bitcoin liked assets. One of the well-known bitcoin-linked asset, GBTC which happens to be the share of Greyscale Venture’s Bitcoin Investment Trust has seen a significant increase in the value, thanks to the surging bitcoin price. According to market data, the value of one bitcoin, based on the underlying bitcoin per share ratio stands at around $933.50, which is 60 percent higher than the actual market rates of bitcoin.

GBTC Tradeblock

The current value of GBTC signifies the willingness of investors to bet heavily on the digital currency which has had its ups and downs in the past and known for its price volatility. GBTC is Bitcoin Investment Trust’s publicly quoted security, the first of its kind which is solely invested and derived from the price of bitcoin.

With GBTC, investors gain exposure to the price movement of bitcoin through a traditional investment vehicle, which is a perfect combination for those who believe in old school ways of investment. GBTC further removes the challenges that come with buying, storing and securing the digital currency itself. Each GBTC is worth about 0.0948 bitcoin.

The Bitcoin Investment Trust’s securities are available for trade on OTC Markets, under the OTCQX marketplace. The OTCQX marketplace uses Alternative Reporting Standards, allowing investors to trade the securities using brokerage accounts at market prices. Accredited investors, on the other hand, can buy share shares directly from Bitcoin Investment Trust at a daily Net Asset Value (NAV) which is close to the actual price of bitcoin at that time.

The trading price of GBTC on OTC Markets is currently the highest, the bitcoin-linked investment vehicle has ever seen since it was released for public trading in the month of April last year. According to the stocks quote on Wall Street Journal, GBTC currently has a market capitalization of $123.39 million with total outstanding shares of over 1.4 million.

With bitcoin price expected to continue on an upwardly trend, we can expect more interest among traditional investors to but GBTC assets. Those willing to look beyond the traditional investment game will probably make a switch from GBTC to actual bitcoins.

Ref: GreyScale | OTC Markets | WSJ  | Image: GreyScale
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