Bitcoin [BTC] is essentially a cryptocurrency that can be stored digitally using a combination of public and private address. While the ledger provides a guarantee against immutability and hacking, the wallet still fails to provide complete trust and security to a person.
A cryptocurrency trust fund, on the other hand, can provide a secure way of storing cryptocurrencies. Grayscale and Bitwise are the two most popular cryptocurrency trust funds in the United States. Moreover, SIX from Switzerland and Coinshares based out of UK offer similar products in Europe. Meltem Demirors, from Coinshares, tweeted,
Sweden-based XBT Provider and Swiss-based Amun AG are issuers of cryptocurrency based ETPs (Exchange Traded Product) in Europe. XBT provider also launched the world’s first Bitcoin-Tracking, Exchange Traded Products to be offered on a regulated exchange.
Moreover, the Grayscale Bitcoin Trust was the best performing fund against all other assets and securities in the US. A press release from WSJ noted,
“Grayscale Bitcoin Trust (GBTC) gained 192% for the quarter as of Thursday… The S&P rose 3.8%, gold futures went up 9% and corn futures jumped 21% during the quarter.”
These trust fund investments are currently available to only high volume traders. However, these are one of the very few cryptocurrency based investment opportunities for “investments that average investors can access in retirement or brokerage accounts.”
Grayscale Market Performace (Source: Grayscale)
Reportedly, Grayscale had one of the best performing years since its launch in 2013. It added $42.7 million alone in the first quarter of 2019. More than 99% of it was directed in Bitcoin.