Institutionals still into crypto, Grayscale GBTC 47% price rise proves

14 Apr, 2019 | Updated: 14 Apr, 2019
by Fifi Arisandi
Institutionals still into crypto, Grayscale GBTC 47% price rise proves

Grayscale Bitcoin Trust (GBTC) sees a significant price rise, which analyst said as a sign of institutional investors' huge interest in cryptocurrency.

Without the existence of Bitcoin ETF, the only way to purchase Bitcoin derivative is through a traditional brokerage account. Grayscale is by far the only institution in the world that has successfully received an approval to list a Bitcoin product on the stock market.

The Grayscale Bitcoin Trust (GBTC) is reported to have seen a 56% increase in its price in the last 3 months.

If it’s calculated from the beginning of this month when crypto prices started to go up, the price is up by a massive 47%.

The number can be considered as spectacular, considering Bitcoin’s spot price has only seen a 28% increase for the same period.

In a tweet from a couple months ago, Fundstrat’s analyst, Tom Lee linked the GBTC price rise with institutional demand.

“Rise in premium is a sign of institutional net buying (easier to buy this ETN from @GrayscaleInvest than buy via a crypto exchange),” he tweeted.

Institutional investors are clearly still into cryptocurrency, which some claimed as the sign of the approaching bull market.

Furthermore, the GBTC price rise also signals that Bitcoin ETF is still pretty much anticipated. According to ToshiTimes, if investors are willing to pay for GBTC’s premium, they would undoubtedly invest and purchase ETF.

On the other hand, it also means that GBTC may see a significant decrease in interest once Bitcoin ETF is approved or other products are available in the market.

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