Bitcoin Investment Trust Hits $700 as Cryptocurrency Resumes Uptrend
Grayscale’s Bitcoin Investment Trust (OTC: GBTC) posted firm gains on Thursday, as the broader cryptocurrency market resumed its uptrend.
Bitcoin Investment Trust
GBTC’s market price per share climbed 4.3% on Thursday to reach $700, according to Grayscale. The index peaked above $1,000 in late August before China issued a blanket ban on bitcoin exchanges as well as the trading of initial coin offerings (ICOs).
Bitcoin prices (BTC/USD) were up nearly 4% at last check to trade at $5,883, according to Bitfinex. The coin continues to trade at a premium on Korean exchanges, which has become the norm since the Asian country began widespread adoption of cryptocurrency. At current values, bitcoin’s total market is around $98 billion.
The Bitcoin Investment Trust provides a traditional avenue for gaining exposure to the world’s largest cryptocurrency by market value. The fund, which began trading in September 2013, has more than $713 million in assets under management.
Wall Street strategist Tom Lee is extremely bullish on the Bitcoin Investment Trust. He recently forecast that the fund’s price could easily triple by 2022, according to CCN. The co-founder of FundStrat Global Advisors has already given bitcoin a “conservative” price target of $25,000 in the next five years.
Lee still cautioned investors about the potential of liquidity risks facing GBTC, especially if the market faces renewed selling pressure. However, this would take an “all out panic,” according to Lee.
Bitcoin prices crashed in the wake of China’s regulatory shakeup, but quickly recovered to trade at fresh records a month later. BTC’s latest advance is partly due to the dismal performance of Bitcoin Gold, which forked from the original blockchain protocol earlier this week. The main Bitcoin Gold network is awaiting activation in early November.
Bitcoin Gold was down 2% at press time to trade at $135, according to CoinMarketCap. That’s merely a fraction of the record value of around $680.
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