We’ve been following Bitcoin Investment Trust, Inc. (OTCMKTS:GBTC) essentially since the start of the Bitcoin craze that took the markets by storm last year. It was a wild ride, even if the pricing of Bitcoin has come back to Earth recently.
What we are seeing, however, is more and more diversification in the crypto space, as companies are moving away from solely bitcoin focused operations, perhaps as a safeguard against the volatility the digital currency has shown.
In fact, Grayscale Investments, which sponsors Bitcoin Investment Trust, Inc. (OTCMKTS:GBTC), announced this week the launch of four new investment products including Bitcoin Cash Investment Trust, Ethereum Investment Trust, Litecoin Investment Trust, and XRP Investment Trust.
“We are thrilled to expand Grayscale’s offerings to meet rising investor demand,” said Michael Sonnenshein, Managing Director at Grayscale. “Our team is committed to bridging the gap between the global investment community and the digital currency asset class. We remain focused on product creation and will continue to launch more single-asset and diversified products to provide exposure where investors are looking for it.”
Each of the Trusts’ shares are among the first securities solely invested in Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), respectively. The investment objective of each Trust is for the shares to reflect the value of BCH, ETH, LTC, and XRP, respectively, held by each Trust, as determined by reference to the TradeBlock index for each digital asset at 4:00 p.m. New York time, less each Trust’s expenses and other liabilities. Grayscale believes that the shares represent a cost-effective and convenient way to gain digital asset exposure relative to a direct investment in digital assets.(Source: PR Newswire)
These launches came barely a month following a previous venture, the launch of a new investment vehicle called the Grayscale Digital Large Cap Fund. The Fund invests in a basket of large cap digital assets that will initially include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC). Through a rules-based portfolio construction process, the Fund targets 70% coverage of the digital asset market. The Fund will be rebalanced on a quarterly basis to remove existing digital assets or include new digital assets in the Fund’s portfolio in accordance with certain criteria established by Grayscale.(Source: PR Newswire)
After skyrocketing to nearly $20,000, Bitcoin, the giant in the crypto world, has certainly run into some difficulty, currently trading in the $9000. But with funds being set up for the next four biggest virtual currency players, we like the tactful approach being taken by GBTC. It’s also worth it to mention that in addition to being one of the most consistently traded stocks on the OTC Markets, the company also received the distinction of being listed on the 2018 OTCQX Best 50 list. Which is anannual 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.
Despite the volatility of the crypto space, especially when compared the markets of fiat currencies, virtually any projection for future growth places the top 5 digital currencies on the path for big increases over a span of the next 1-5 years. We’ll stay up on any further developments with GBTC and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
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.