Cryptocurrencies like Bitcoin have generated considerable returns over the past year or so, but those who want to stay invested in Bitcoin without directly owning it could consider having a look at the Grayscale Bitcoin Trust (OTCMKTS:GBTC) stock.
As of 12 pm GBTC shares are trading at 51.30 up 3.6% on the day. Volume is 5.6 million shares. The stock is very liquid and has a 30-day average trading volume of 9.4 million shares a day. Shares have moved from a low of 7.03 to a high of 58.22 this year tracking the big move in the underlying asset Bitcoin.
Grayscale allows investors to stay invested in Bitcoin through the traditional stock market. The Grayscale Bitcoin Trust is a fund that acquires Bitcoin and shares in the fund is trading on the OTC markets.
Since the underlying asset in the fund is entirely made up of Bitcoin, the value of the fund is directly affected by the price fluctuations in the world’s biggest cryptocurrency. Consequently, it has an effect on the stock price as well.
However, at the same time, it should be noted that owning a share in Grayscale Bitcoin Trust is not the same as actually owning a Bitcoin token. Investors would not be able to demand Bitcoin tokens in exchange for their shares.
Recently, Grayscale said in the post “First and foremost we wish to make clear: we are 100% committed to converting GBTC into an ETF, ”It further added that “While several firms have submitted Bitcoin ETF applications in the form of an S-1 or 19b-4 to the SEC, we are confident in our current positioning and engagement with the SEC,” Grayscale said. “Today, we remain committed to converting GBTC into an ETF although the timing will be driven by the regulatory environment.”