Bear Market drags only ‘Bitcoin Investment Trust’ below $1 bn valuation
Grayscale Bitcoin Investment Trust (GBTC), the crypto-centric investment fund has dropped below the $1 billion mark in valuation at the beginning of November, for the first time in 2018, reports Diar.
Commencing operations nearly five years ago, GBTC launched their first every Bitcoin investment-trust back in September 2013 and then went on to include individual-assets funds with cryptos like Ethereum Classic [ETC], Zcash [ZEC] and Litecoin [LTC].
Despite the decrease in valuation of the investment trust, GBTC has seen its Bitcoin holdings increase in the month of December. Diar reports that the investment firm holds over 203,000 BTC ($790 million) which accounts for over 1% of the circulating supply.
GBTC’s other cryptocurrency-related financial assets have not found“solid interest,” states Diar. The investment fund also handles eight non-Bitcoin related products which, “sits at a tiny 56.4 million, a notch over 6% of the sponsor’s total.” Diar further goes on to state that, “This has in fact now decreased from 8% when Grayscale launched its Zen Fund.”
Much like the rest of the market, GBTC has had a dismal 2018, with the investment trusts’ shares dropping by 80 percent in just 10 months from December 2017, when the crypto-markets were enjoying the bull-run and Bitcoin nearly touched the $20,000 market to October 2018.
Grayscale also released their investment report in mid-July this year which stated that over 56 percent of their capital-inflow came from institutional investors, in the first half of 2018. Boasting a total investment, as on June 30, 2018 of $284.4 million and a weekly average fresh capital figure of $9.5 million.
These figures come at an important crossroads for the cryptocurrency industry with several large players entering the fray. The ICE (Intercontinental Exchange) backed Bakkt, the digital assets platform is set to launch in January 2019. State Street and Fidelity Investments Inc are mulling the introduction of crypto custody services with an apprehension of client demand and the Bitcoin-ETF is once again on the cards in the next year, signalling in a wave of institutional interest.
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