Bitcoin recorded a mediocre run over the last two months, a period during which the coin’s price plummeted from its yearly high of $13,800 to below $9500. The initial bullish momentum subsided, with stagnation and sideways movement soon taking over the market. Despite this prolonged misery, the largest virtual asset was still enjoying a lucrative year, when compared to the beginning of 2019.
Alongside Bitcoin, Grayscale’s Bitcoin Trust [GBTC], which acts as a Bitcoin fund exclusively investing in BTC, has also surged significantly since its inception in 2013.
According to Grayscale’s Performance and Risk Monitor report, GBTC boasted a total annualized return of about 84.4 percent, after accounting for the annualized Risk percentage over the same period of time [Inception to March 2019]. Besides Bitcoin, only Grayscale’s ETC trust reported a positive total return of 7 percent, while all other virtual assets reported a negative return percentage.
However, GBTC’s impressive numbers are more comprehensive when the total cumulative return percentage is taken into consideration. GBTC has yielded a growth of 2721.3 percent since its introduction, massively outperforming a majority of the virtual asset funds backed by Grayscale.
In similar fashion to Bitcoin, GBTC also outclassed the traditional asset index in 2019, including the likes of S&P 500 and Global Dow. At the start of July, GBTC had recorded a yield of 296 percent to year-to-date appreciation, whereas the aforementioned could only garner 18.7 percent and 12.9 percent, respectively.
The growth of GBTC in 2019 can be attributed to the effective #DropGold campaign led by Barry Silbert, an initiative that promoted the idea of opting for Bitcoin rather than Gold as a long-term investment.