Even in the midst of a bear market, some investment firms were still seeing an influx of investment from investors. The creator of GBTC – Grayscale – saw an average investment of $2 million on a weekly basis during the last quarter of 2018. About 66 percent of all the investments were from institutions, while Bitcoin (BTC) accounts for 88 percent of all the digital investments of the firm.
Grayscale Had Its Best Year in 2018
Only 12 percent of investments are channeled at other digital assets, leading the firm to declare the “return of the Bitcoin (BTC) Maximalist” in their quarterly report. 2018 saw a massive decline in investments across the board, as the bears were in charge of the market. However, 2018 was the best year for Grayscale so far, as the firm recorded more than $359 million investments.
The GBTC product of the firm has been running for a couple of years now. With more than $359 million in investments, Grayscale recorded its best year in 2018. The growth was about 300 percent more than 2017, the year Bitcoin (BTC) recorded its largest bull run in history.
Investors found the GBTC product very attractive. Nevertheless, the firm believes that other digital assets are going to flourish in the future.
In a statement, the firm said: “Irrespective of a slowdown in investment across products in the last quarter of 2018, we continue to see evidence that digital assets are here to stay as a new asset class. Moreover, we believe in a future where multiple digital assets exist, thrive, and complement each other in the digital economy, allowing them to play a diversifying role within the portfolios of investors.”
Retirement Accounts Accounted for 40 Percent of the Investments in 2018 Q4
About 40 percent of all the investments that the firm recorded in the last quarter of last year was from retirement accounts. GBTC is one of the numerous products that could be bought by the Blockchain Opportunities Fund. It was recently over 50 percent funded by just one county in Virginia.
Two retirement funds in Fairfax County accounted for $21 million out of the $40 million invested into Morgan Creek Digital fund. When the product was launched some year ago, the value of shares in the product was meant to be equivalent to 0.1 BTC. Nevertheless, there has been a significant change, as shown by the real value of GTBC on the over-the-counter markets.
Bitcoin (BTC) Price Today – BTC / USD
GBTC reached its all-time high at the peak of the massive BTC bull run in 2017. However, GBTC has lost more than 75 percent of its value since then. Some researcher found a statement from the firm when researching the issue.
In the statement, the Bitcoin Investment Trust said: “There can be no assurance that the value of the shares will approximate the value of the Bitcoin (BTC) held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust’s Bitcoin (BTC). The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.”
GBTC is one of the ways through which traditional investors can gain exposure to digital currency assets. But an exchange-traded fun is still in the offing, and when that is settled, almost everyone expects a greatly renewed interest in the digital currency markets, which have remained stagnate for some weeks now.