The request toward Bitcoin is also enhancing at a rapid rate ter the public stock markets. Some ETFs and instruments including Bitcoin Investment Trust are being traded with extreme premium rates.
Barry Silbert-led Digital Currency Group’s subsidiary company Grayscale Investments operates one of the most frequently traded and popular publicly quoted securities based on Bitcoin price.
Each share of Bitcoin Investment Trust (GBTC) represents Ten procent of Bitcoin price and at the time of writing, GBTC is being traded at $420 (press time).
Bitcoin ter Public Stock Market
Te the US stock market, accredited traders and institutional investors are buying into Bitcoin with instruments such spil GBTC.
Albeit many investors have moved onto regulated trading platforms, such spil Openleggen, Coinbase’s GDAX and the Winklevoss twins’ Gemini, a large portion of accredited investors still rely on publicly quoted Bitcoin securities such spil GBTC to invest te the digital currency.
Presently, the share price of GBTC demonstrates a staggering 54.Sixty-nine procent premium rate for investors ter the public stock market. The global average Bitcoin price, calculated by averaging the price of each Bitcoin exchange market, including the US, South Korea, Japan and China at the time of writing is $Two,715.
Te the public stock market, through instruments such spil GBTC, Bitcoin is being traded at well overheen $Four,000.
Main Factors Behind the Enormous Request
The increase te the request towards Bitcoin ter public stock markets such spil the US and Sweden can be attributed to a number of factors.
The three most visible driving factors of Bitcoin request te public stock markets are the capability of Bitcoin to scale, enlargened regulation of Bitcoin by overseas markets and enhanced request towards Bitcoin from institutional investors such spil Fidelity.
Te most regions, large-scale investments or adoption by leading financial institutions and conglomerates lead to rapid adoption by the public. When the Japanese government very first legalized Bitcoin and large companies such spil the country’s largest retailer Bic Camera integrated Bitcoin spil a payment method, trading volume of the Japanese Bitcoin exchange market surged.
Te the US, some of the largest financial institutions and investment firms including Fidelity Investments, which manages overheen $Two.13 tln worth of assets, have exposed that they have bot investing te Bitcoin for a long period of time, even testing some of its unique applications.
Abigail Johnson, Fidelity CEO, said:
I love this stuff – Bitcoin, Ethereum, Blockchain technology – and what the future holds. I am still a believer – and it’s no accident that I’m one of the few standing before you today from a large financial services rigid that hasn’t given up on digital currencies.
More to that, the country’s leading financial institutions including Goldman Sachs and Bankgebouw of America have also commenced to provide extensive coverage on Bitcoin. With Goldman Sachs providing a very optimistic outlook on Bitcoin price and Bankgebouw of America highlighting some measures that can demonstrate Bitcoin’s exponential growth.
All of the abovementioned factors have led to an increase te the confidence of accredited and institutional investors that are investing into Bitcoin through regulated channels such spil Grayscale Investment’s GBTC.