The Grayscale Bitcoin Trust (GBTC) is the world’s largest Bitcoin fund with almost 650,000 Bitcoins and approximately USD 38 billion in assets under management. Over the past year, some aggressive Bitcoin purchases and a massive BTC price rally have helped GBTC gain tremendous dominance in the market.
If GBTC continues like this, it could flip the world’s largest gold ETF GLD by the end of 2021. Currently, GLD is 60% larger than GBTC with net assets under management of $ 58 billion. The latest forecast that GBTC may overtake GLD comes from the change in assets under management since June 2020.
Courtesy of Ecoinometrics
The popular Twitter handle Ecoinometrics adds that if GBTC or GLD doesn’t have a major inflow or outflow, then the BTC price must go up between 80,000 and 100,000 for GBTC to outperform GLD. Many analysts have already set BTC price targets of over $ 100,000 for this year. So the chances of turning around could be very high.
However, the Grayscale Bitcoin Trust (GBTC) is already exposed to the heat of other competitive Bitcoin investment alternatives out there. The Grayscale Bitcoin Trust (GBTC) premium traded at a discount last month.
Grayscale Bitcoin Trust showed -0.68% for the first time on February 23rd, with the exception of the two days that traded at a negative premium the rest of the time and even hit -11.59% on March 4th. The reason could be the competition between the three Bitcoin ETFs listed in Canada. pic.twitter.com/DF4fms3xI6
– Wu Blockchain (@WuBlockchain) March 22, 2021
US Bitcoin ETF can play a spoilsport for GBTC
There is great excitement in the market for the arrival of the US Bitcoin ETF this year. The Purpose Bitcoin ETF launched in Canada last month has already exceeded $ 1 billion in assets under management and holds over 14,100 bitcoins in cold storage.
It is clear that the demand and appetite of investors for the Bitcoin ETF is increasing in the market. When a bitcoin ETF goes online in the US, it could potentially be many times larger, considering how financial institutions and US companies have joined the bitcoin train over the past few months. There are currently five Bitcoin ETF applications with the SEC.
There are currently at least 5 U.S. Bitcoin ETF applications awaiting approval: WisdomTree, VanEck, NYDIG Asset Management, Valkyrie Digital Assets, Skybridge, and First Trust
A SEC decision on the first US #Bitcoin ETF could be made within the next 45 days
– Bloqport (@Bloqport) March 20, 2021
There is no doubt that grayscale has the lion’s share of bitcoin holdings. However, Ecoinometrics notes that other publicly traded companies like MicroStrategy can be a strong alternative for getting a long BTC.
7 / … at this point, $ MSTR is a pseudo-ETF for #Bitcoin.
At 91,326 BTC, the value of their treasury is more than 75% of the share’s market capitalization… pic.twitter.com/LqkO0RgRqJ
– Ecoinometrics (@ecoinometrics) March 21, 2021
The point here is that while Grayscale is still the undisputed leader, it’s no longer the only game in town. Let’s see if the Grayscale Bitcoin Trust (GBTC) can really live up to its expectations and turn the GLD around this year. This is sure to be a huge milestone and achievement for the entire Bitcoin community.
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