Bitcoin, the world’s biggest cryptocurrency by market cap, has been in the middle of a remarkable rally for the past few months and on Monday it rocketed past the $47,000 per coin mark.
However, the continued rise in Bitcoin has also resulted in strong rallies in the Grayscale Bitcoin Trust (Btc) (OTCMKTS:GBTC) stock. Following the latest rally in Bitcoin, the Grayscale Bitcoin Trust stock went up by as much as 20%.
In this regard, it should be noted that since the underlying asset in the trust is Bitcoin, it is only natural for its stock price to rise in accordance with the rise in the price of the cryptocurrency.
In this regard, it is also necessary to note that experts believe that the biggest trigger for the rally in Bitcoin was a revelation from electric vehicle manufacturing giant Tesla. The company revealed in a filing that it bought $1.5 billion worth of Bitcoin and that brought more investors flocking to the cryptocurrency.
On the other hand, there was a major announcement last week that may have been one of the factors behind the rally in the Grayscale Bitcoin Trust stock. The announcement in question came from the Miller Value Funds, which is run by the billionaire hedge fund manager Bill Miller.
It was announced that the Miller Value Funds might invest in the Grayscale Bitcoin Trust through Miller Opportunity Trust, a flagship fund. In the announcement, it was noted that the fund is looking to get into Grayscale Bitcoin Trust in order to gain further exposure to Bitcoin.
However, at the same time, it was also pointed out that the total exposure to Bitcoin is not going to be more than 15% of the total assets. At this point, the total assets in the fund are valued at $2.25 billion.
However, it cannot be denied that such an announcement from a fund managed by a Bitcoin bull-like Bill Miller can only be a good thing for Grayscale.
Disclaimer: We hold no shares of GBTC stock.