With nearly 650K Bitcoins in its kitty, the Grayscale Bitcoin Trust (GBTC) is the world’s largest Bitcoin fund with ~$38 billion in assets under management. Over the last year, some aggressive Bitcoin purchases and massive BTC price rally has helped GBTC gain huge market dominance.
If GBTC continues at this rate, it can flip the world’s largest Gold ETF GLD by the end of 2021. As of now, GLD is 60% bigger than GBTC with $58 billion in net assets under management. The latest prediction that GBTC can overtake GLD comes from the change in assets under management happening since June 2020.
Courtesy: EcoinometricsThe popular Twitter handle Ecoinometrics further adds that if there’s no major inflow or outflow either in GBTC or GLD, then it will take the BTC price to surge anywhere between 80K-100K for GBTC to surpass GLD. Many analysts have already given BTC price targets above $100K ahead this year. Thus, the chances of flipping could be very much on the cards.
However, the Grayscale Bitcoin Trust (GBTC) is already facing heat from other competitive Bitcoin investment alternatives in the market. The Grayscale Bitcoin Trust (GBTC) premium has been trading at a discount over the last month.
Grayscale Bitcoin Trust first showed -0.68% on February 23, except for the two days, the rest of the time were all traded at a negative premium, even reached -11.59% on March 4. The reason may be due to competition from the three Bitcoin ETFs listed in Canada. pic.twitter.com/DF4fms3xI6
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