TL;DR Breakdown
- Grayscale Bitcoin Trust (GBTC) has outperformed Tesla, reveals Bloomberg’s Mike McGlone.
- He credited GBTC price growth to the increasing interest in Bitcoin ETF in the U.S.
Last week, the leading Bitcoin Fund manager, Grayscale launched five new crypto investment products for individuals and institutional investors. According to Bloomberg’s chief commodity strategist, Mike McGlone, GBTC has outperformed Tesla since the beginning of the year.
Grayscale Bitcoin Trust Leads Tesla Stocks
Mike revealed through a tweet that the Grayscale Bitcoin Trust (GBTC) is leading Tesla stocks by almost 50% since the year started. He attributed the growth of the GBTC to the increasing chances of Bitcoin ETFs happening in the U.S.
Although the SEC has not yet approved any Bitcoin ETFs in the U.S., there is so much anticipation from investors for approval. After many failed proposals by Bitcoin ETF issuers, the latest firm to send a proposal to the SEC is VanEck, a global investment manager.
However, the 45-day approval window by the SEC is currently on. According to John Davi, the CEO of Astoria Portfolio Advisors, it’s just a matter of time before the approval comes through. Davi continued that people will readily invest in Bitcoin ETF once it is approved
Grayscale Bitcoin Trust performance linked to interest in Bitcoin ETF
According to a report, Grayscale Bitcoin Trust may be converted to a Bitcoin ETF if the SEC allows. This is due to the current negative premium of the GBTC and the increasing interest in Bitcoin ETF.
Mike continued that the increasing interest in Bitcoin ETF in the U.S. has contributed to the performance of the GBTC compared to Tesla stocks. Mike had tweeted earlier this year that Bitcoin has already become less risky than the Dow Jones index.
A couple of hours back, he tweeted that the flagship cryptocurrency is on its way to becoming a “risk-off reserve asset”. Mike added that Bitcoin will eventually become a global digital reserve asset.
Recently, Elon Musk announced that Bitcoin can now be used to purchase Tesla cars. He added that the BTC will be added to its $1.5 million worth of Bitcoin in its custody. Following the news, the price of Bitcoin soared by $6,000. However, Bitcoin has dropped since then and is currently trading around $53,579.
