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Thursday, September 28, 2023

Grayscale Bitcoin Trust (Btc) (OTCMKTS:GBTC)Gains Momentum as Bitcoin Reaches Record Levels

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Bitcoin has been in the middle of a remarkable rally for the better part of the past few weeks, and now the world’s biggest cryptocurrency by market cap looks set to hit its all-time highs. The rise in the price of Bitcoin has also proven to be a boon for investment trusts like the Grayscale Bitcoin Trust (Btc) (OTCMKTS:GBTC).

Bitcoin Soars

Since the underlying asset in the trust is Bitcoin, the GBT stock has also rallied strongly and over the course of the past six weeks, it has gained as much as 100%. These are fresh highs for the GBT stock and in such a situation it could be a good idea for investors to perhaps take a closer look at it.

One of the most important things to remember with regards to the Grayscale Bitcoin Trust (Btc) (OTCMKTS:GBTC) is the fact that its price is directly related to the price of Bitcoin. Hence, if the rally continues then it is likely to be a boost for the stock as well.

While the rally has been cheered on by Bitcoin investors, it needs to be remembered that it had hit these levels back in early 2018 before nose-diving significantly.

eToro Statement

However, experts have suggested that this time the situation may be different. Managing director of eToro, Gut Hirsch stated that the flow of institutional money is one of the many reasons for the rally.

In addition to that, there have been other positive news with regards to GBT as well in recent days. On Sunday it emerged that the Guggenheim Strategic Opportunities Fund is mulling the possibility of getting exposure to Bitcoin as per a securities filing.

The potential investment is going to be made through the Macro Opportunities Fund, which managed $5 billion. According to the filing, as much as 10% of the Macro Opportunities Fund’s value could be pumped into GBT. It goes without saying that it is a massive development.

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