BitOffer Institute: Grayscale Invested 2/3 of New Bitcoins, Investment That You

[CastyLamer]

“Grayscale is buying about 2/3 of all new Bitcoin's supply, according to the research performed by a Reddit user aka parakite. The data shows that the Grayscale Bitcoin Trust increased by over 60,000 BTC from February 7 to May 17, which means that those coins will be locked for at least six months.

Those findings are confirmed by another cryptocurrency expert Kevin Rooke, who explained that Grayscale Bitcoin Trust invested nearly 30 billion in Bitcoin per week in Q1 2020, which is ten times more than a year ago. This development may indicate increased institutional interest in Bitcoin as Grayscale Trusts allow them to gain risk-free exposure to digital assets like Bitcoin and Ethereum. “（Tanya Abrosimova，2020）

The news above I quoted is that Grayscale Bitcoin Trust increased its Bitcoins holding positions by 60,000 BTC which is equal to 2/3 of all new Bitcoin’s supply. It has no doubt that it became another cardiotonic to the Bull market since the Bitcoin price hovered recently. Then, most investors may have questions: What is Grayscale Bitcoin Trust, How does it influence the market, etc.

What is Grayscale Bitcoin Trust?

Grayscale Bitcoin Trust (GBTC) is an investment vehicle. GBTC enables investors to gain access and exposure to the price movement of bitcoin in the form of a traditional security without buying, storing and safekeeping bitcoin directly. GBTC’s purpose is to hold bitcoins, which are digital assets that are created and transmitted through the operations of the peer-to-peer bitcoin network, a decentralized network of computers that operates on cryptographic protocols. The investment objective of GBTC is for the shares (based on bitcoin per share) to reflect the value of the bitcoins held by GBTC, determined by reference to the bitcoin index price, less the GBTC’s expenses and other liabilities. The activities of GBTC include issuing baskets in exchange for bitcoins transferred to the GBTC as consideration in connection with the creations.

How Does It Influence the Market?

1.   Continuous Purchasing on the Bitcoin Market
From the fund units, Grayscale Bitcoin Trust has already held more than 30 billion Bitcoins. Furthermore, they almost kept investing 2,000 bitcoins every day recently. Even compared with the daily liquidity of the Bitcoin market, daily investing 2,000 Bitcoins seems to be insignificant at all, but if the capitals continue buying-in Bitcoins in this way in the future, the strength of the net purchase will structure a positive uptrend on the Bitcoin market, which will do a remarkable benefit to the bull comes out.

2.   The Overall Market Expectations are Still Bullish.
Traditional finance institutions increased their Bitcoin quotas of their portfolio: As what Grayscale announced is that 80% of their clients are from traditional finance institutions. Plus the news we mentioned at first, gave out a fact that the traditional finance institutions started increasing their Bitcoins quotas of their portfolio by keeping purchasing GBTC, which caused Grayscale to buy almost 2/3 of all new Bitcoin’s supply recently.

Then, why are institutions willing to pay a 20% to 40% premium to buy GBTC?

1.   After purchasing GBTC, the book value of the Bitcoins will immediately increase by 20% to 40%.
2.   The Bitcoins they hold will directly become traditional financial assets, which means the Bitcoins they hold will be able to buy or sell in the traditional finance market.
3.   In this way, they are still holding a bullish attitude to the Bitcoin market. The lock period now has been reduced to 6 months. If the investors need to sell some Bitcoins after then, they could directly sell trust shares which are 20% to 40% higher than the Bitcoin price. Even the premium is gone by discount in the future, Genesis, the one true controller of the trust, can enable the redemption. Then, the trust shares can be exchanged into Bitcoins before cashing out.

Thus, to institutions, even purchasing GBTC now has a 20% to 40% premium, it is still a secure, stable, and profitable way to enhance their ROI. Theoretically, purchasing GBTC now should be defined as “arbitrage”, but since the tradable shares on the market are only value at less than 4,000 Bitcoins. At least in the next 6 months, it is still cardiotonic to call the bull to come out.

How Can Investors Who Cannot Purchase GBTC Now Enjoy Similar Advantages?

Since the requirement of purchasing GBTC is strict, how can investors who do not meet the requirements to enjoy similar advantages that GBTC brings?
BitOffer Bitcoin ETF should have been the only answer now you can find in the market.

Bitcoin ETF launched by BitOffer is an investment of special asset management that can track the Bitcoin price index. Its biggest benefit to investors is that it can enable investors to hold cryptocurrency more easily than buying one or even more tokens. BitOffer Bitcoin ETF now has already supported BTC3X(Open 3X long BTC), BTC3R(Open 3X short BTC), and BTCR(Open 1x short BTC), which means that BitOffer Bitcoin ETF allows investors to long or short as they desire, unlike GBTC, once the investors purchase it, they can only keep being the longs.

Furthermore, an automatically adjusting mechanism has been added into BitOffer Bitcoin ETF. With this innovative function, its payoff can reach 3X to 15X because its net value will be updated in real-time, so it is calculated by compounding.
Now purchasing Bitcoin ETF on BitOffer.com is still available. And the minimum purchase is only 10 USDT. Start purchasing Bitcoin ETF on BitOffer, earning 17 times profits no matter the market pumps or dumps.

[Hugo Barbosa]

That makes sense. I still prefer the BitOffer Option, even though they quite different. Coz that's lower risk and convenient.