x min read

Is It Time To Buy Bitcoin Investment Trust (OTCMKTS:GBTC) On Cryptocurrency Resurgence?

Is It Time To Buy Bitcoin Investment Trust (OTCMKTS:GBTC) On Cryptocurrency Resurgence?
Written by
Jim Bloom
Published on
February 15, 2018
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

Bitcoin Investment Trust (OTCMKTS:GBTC) is yet again the center of attention on improving sentiments in the cryptocurrency space after the recent sell-off. The trust stock price has bounced back, after losing more than 70% of market value.The rally which has come on one volume presents an opportunity to buy discounted shares, with tremendous growth potential. Improving regulatory sentiments is one of the reasons why we remain bullish about Bitcoin Investment Trusts prospects in the cryptocurrency space. GBTC Daily ChartThe stock has already emerged as a safe play in the highly volatile space, given that each share of the company’s stock entitles one to approximately $0. 001 bitcoin. With the stock trading at the $16.44 handle, it needs to close above the $20 a share mark, to re-affirm the emerging bullish trend.A close above the $20 a share mark, could see the stock making a run for the $30 a share handle. On the downside, the stock faces immediate support at the $10 a share handle.Before we look at the catalysts behind the recent spike in share price, let us first understand what Bitcoin Investment Trust’s core business entails.Bitcoin Investment Trust Core BusinessBitcoin Investment Trust is an open-ended trust, focused on investment opportunities around bitcoin. The publicly traded company provides a way for investors to gain exposure to the price movement of the virtual currency without having to contend with the challenges of buying, storing and safekeeping.Grayscale Investments, a wholly owned subsidiary of Digital Currency Group, is GBTC sponsor.Bitcoin Investment Trust Resurgence Bitcoin has been spiking high in the wake of most cryptocurrencies staging a comeback after one of the worst routs in recent years. The rally has to do with changing regulatory sentiments.The SEC chairman Jay Clayton and CFTC head Christopher Giancarlo insisting in front of a U.S Senate committee hearing that further regulation of digital assets won’t be required are seen as one of the leading reasons behind the crypto assets bounce back.The likes of Bitcoin Investment Trust had come under pressure early in the year, with regulators around the world hinting at stringent regulation on cryptocurrency trading. The U.S taking a soft stance has helped avert investors’ concerns about what the future holds for companies with stakes in the industry.Impact of Bitcoin Price Increase Bitcoin has already rallied past the $8,000 mark after initially plummeting below the $6,000 mark, for the first time after its breathtaking rally to record highs of $2,000. Bitcoin Investment Trust share value is somehow dependent on the value of bitcoin.An increase in the value of the digital currency goes a long way in impacting the value of GBTC given that each share is equal to about 0.001 bitcoin. One must own approximately 1,000 shares to control one bitcoinTaking into consideration the current market price of $16.28 per share, Bitcoin investment Trust implies a value of about $16,163 per bitcoin.Grayscale Investment New Fund Bitcoin Investment Trust has also received some support in the market on its sponsor, Grayscale Investment, announcing the launch of a new fund. Grayscale Digital Large Cap Fund LLC is the new fund aimed at helping institutional and accredited investors gain exposure to the cryptocurrency space.With assets under management worth $1.31 billion, Grayscale intends to hold top digital assets by market capitalization with the new fund. Some of the digital assets that the fund has set its eyes on include Bitcoin, Ethereum, and Bitcoin cash.

“We're excited to further expand the universe of Grayscale's product offerings as interest in the digital currency asset class continues to grow," said Barry Silbert, CEO of Grayscale. He continued, "As a trusted and experienced manager, Grayscale is committed to creating investment structures that are familiar to qualified investors and provide secure access to this emerging asset class."

Bitcoin Investment Stock SplitEarly this year Bitcoin Investment trust declared a 91 for 1 stock split of its issued outstanding shares. With the split, shareholders on record as of January 22, 2018, walked away with 90 additional shares of the Trust, for each share held.What to Expect From Bitcoin Investment TrustImproving sentiments in the cryptocurrency space has once again strengthened Bitcoin Investment Trust prospects in the industry. After the recent sell-off, the stock appears to be staging a comeback after plunging from record highs of $38 a share.Stability in the industry is what is needed if the stock is to continue powering high. However, if levels of volatility experienced in the recent past are anything to go by, then one would be naïve to expect smooth sailing from the current level.However, Bitcoin Investment Trust appears to be an exciting pick for gaining exposure in the cryptocurrency space, if its performance in the past is anything to go by.We will be updating our subscribers as soon as we know more. For the latest updates on GBTC, sign up below!Disclosure: We have no position in GBTC and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.