Lone Bitcoin Investment Trust Below $1 Bln for First Time in 2018
Greyscale's Bitcoin Investment Trust (GBTC) that prides itself to be the first investment trust in the United States is reported to be worth less than a billion dollars on Dec 3, according to Diar Reports. Notably, this is the first run through in 2018 that the estimation of the firm has fallen behind the billion dollar mark.
However, it is to be noted that the trust is seeing a record amount of bitcoin deposits even though the worth in dollars seems to be low. GBTC reportedly, "the biggest institutional investment firm in the cryptocurrency space" claimed to be holding more than 203,000 BTC. The amount of Bitcoins possessed by GBTC equals slightly more than 1 % of the circulating supply.
GBTC enables its investors to gain exposure on the price movement of bitcoin through a traditional investment vehicle eliminating the challenges of buying, storing and safekeeping bitcoins.
GBTC reportedly, "the biggest institutional investment firm in the cryptocurrency space" claimed to be holding more than 203,000 BTC.
Despite an increase in Grayscale's Bitcoin holding, its other financial products are yet to take up the slack. According to Diar, "The current Assets under Management for all 8 products sits at a tiny 56.4Mn, a notch over 6% of the sponsor's total. This has in fact now decreased from 8% when Grayscale launched its Zen Fund."
GBTC shares have slowly started to go down since the Bitcoin price surge in 2017-18. The value of Greyscale's shares dropped by nearly 80% just like the value of Bitcoin in between December 2017 and October 2018.
The value of Greyscale's shares dropped by nearly 80% just like the value of Bitcoin in between December 2017 and October 2018.
Emphatically, Greyscale has been a favorite for institutional investors with about 56% of the capital inflow in 2018. In July, Greyscale released a report stating that the average investment sum was $848,000 for institutional investors, $553,000 for family offices, $335,000 for retirement accounts, and $289,000 for individuals.