When we last touched on Bitcoin Investment Trust (OTCMKTS:GBTC) just a few weeks ago, we suggested that the stock could continue to rise along with Bitcoin prices. Well, this week Bitcoin hit a all-time record high, and our assumption turned out to be completely accurate.
According to Bitcoin Investment Trust, the company is a private, open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. It enables investors to gain exposure to the price movement of bitcoin without the challenge of buying, storing, and safekeeping bitcoins.
That’s why as Bitcoin soared over $2400 this week, Bitcoin Investment Trust (OTCMKTS:GBTC) also saw a major run-up on the chart. Subsequent to our last article, one share of GBTC (each of which represents approx. 0.1btc) traded as low as the $183-range, and this week new highs above $330 have been reached. That’s a remarkable increase of 80% in just a few weeks’ time.
It’s become apparent that the SEC’s rejection of the Winklevoss Bitcoin ETF (Pending:COIN) has not had the negative impact on bitcoin markets that some suggested it may.
According to CBS News, as political instability in many parts of the world causes a spike in bitcoin demand… Some watchers argue that prices for bitcoin and other digital currencies will continue rising.
“What we’re seeing is mainstream adoption … and cryptocurrencies like bitcoin becoming an accepted commodity for investment,” said Sheffield Clark, co-founder and CEO of Coinsource, the world’s largest bitcoin ATM network. “I also expect many countries to follow Japan’s footsteps and recognize bitcoin as a legal payment method. As the investor base broadens, there inevitably will be a bandwagon effect that will take hold.”
Bitcoin has certainly gone farther than a lot of people suspected it would even just a few years ago, with prices more than doubling in 2017 alone. Funds like GBTC offer a great way for investors to speculate with bitcoin without actually ever possessing any bitcoin. In fact, $100 worth of bitcoin in 2010 would now be worth over $70M.
It’s also worth it to mention that GBTC is listed as #25 on the OTCQX Best 50. The OTCQX Best 50 is an annual ranking of the top 50 U.S. and international companies traded on the OTCQX Best Market, based on an equal weighting of one-year total return and average daily dollar volume growth. Companies in the 2017 OTCQX Best 50 were ranked based on their performance during the 2016 calendar year. 2017 OTCQX Best 50 companies traded an aggregate $3.4 billion in dollar volume in 2016. The companies delivered an average total return of 130%.
So what we have with GBTC is a link to a crypto-currency whose current popularity is going through the roof with no indications of slowing, and a chart that has revealed that fact every step of the way. It’s safe to say that we are very excited to see where the bitcoin train travels, and how far it takes GBTC along for the ride. If you want to follow the story of GBTC and Bitcoin along with us, the solution is simple. Just stay locked to Street Register for key updates, and we’ll deliver important developments on GBTC and the bitcoin markets as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in GBTC stock, short or long.