After its introduction in 2013, Grayscale Bitcoin Trust (GBTC) managed to become one of the largest Bitcoin investment products in the world. So far, GBTC has outperformed most traditional assets year to date, in line with BTC’s rising prices, and became one of the most actively traded securities on the OTC Markets Group.
Grayscale Bitcoin Trust has had an amazing year so far, with its value increasing 375 percent since February. The over-the-counter security reached a low of $3.67 on Feb. 6 and rose all the way up to $17.40 on June 26. In comparison, Bitcoin’s price only increased 318 percent from $3,330 to $13,920 during the same time span.
Not only has GBTC beat Bitcoin in terms of performance, but when compared to traditional assets typically seen as “safe haven” assets, such as gold or real estate, GBTC has the lead—unless the market takes a turn, that is.
Gold has been considered for years the preferred store of value asset during times of financial turmoil. Its finite supply make and long trading history make it an ideal hedge against macroeconomic problems.
That said, during ongoing trade war between the United States and China revealed that Chinese investors prefer cryptocurrency investment products instead of gold. The declining interest for the precious metal can be seen in its market valuation, only rising 9 percent between the beginning of February and the end of June despite global economic turmoil.
Similar behavior can be seen in the S&P 500, which is a stock market index based on the market capitalization of 500 largest American companies. The investment vehicle appreciated 7.65 percent over the same time period that GBTC rose 375 percent.