Why is GBTC Posting Better Results Tesla stocks?
In a series of posts on the bird app, Mike disclosed that since the start of this year, GBTC has been outperforming Tesla stocks by about 49%. Mike opined that the possibility of a BTC exchange-traded-fund occurring in the country is already causing the firm to grow. Though SEC is yet to approve any BTC ETF in America, potential investors are so much hopeful of an approval. Vaneck, an acknowledged worldwide investment management firm, is the most recent firm to seek SEC approval for BTC ETF. Before their proposal, several BTC ETF issuers have sent theirs to the SEC but none was approved by the financial regulatory body. Other companies can still join Vaneck since SEC’s 45-day approval period hasn’t elapsed yet. Astoria portfolio advisers’ CEO, John Davi believes the SEC would eventually approve the BTC ETF even if it will take some time before the approval is granted. Davi further remarked that a lot of people are ready to invest in it once the approval is granted.
Increasing Interest in BTC ETF enhancing GBTC’s Performance
There are rumors that it can be possible to convert GBTC to BTC ETF since there is a rising interest in BTC ETF and a negative premium of the GBTC at the moment. However, the SEC will have to approve. Mike further stated that GBTC’s better performance than Tesla stocks is a result of the rising interest in BTC exchange-traded-funds. At the start of the year, mike tweeted that BTC is now less risky than the dow jones index. After a few hours, he put out another tweet saying that the king coin would soon become a “risk off-reserve asset.” mike concluded his tweet with the BTC will ultimately become a global virtual reserve asset. Not long ago, Elon musk disclosed on the bird app that buyers can now buy Tesla cars with BTC. He also remarked that such BTC payments will be added to the electric car company’s previous investment in BTC (about $1.65 million worth). Almost immediately after musk’s tweet, the leading crypto asset rose in price by $6K. But, BTC has declined since then and it currently trades at about $54K.
GBTC Declines to A Nadir Price
While the king coin continues in a downtrend, GBTC reached its nadir compared to the net asset value, it went as lows as -14%. Before now, traditional investors interested in BTC investing usually purchase GBTC shares with the funds premium rising to 42% last year. However, in a bid to put the funds premium back in green colors, grayscale’s parent company, the digital currency group has revealed plans to purchase over $200 million GBTC shares.