Companies Take Advantage of Buying GBTC

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2021-11-02 20:33:36

Institutional investors are buying GBTC

Bitcoin price yesterday fluctuated around $48,000 after rebounding from $46,000. Altcoins with SOL and LUNA coins have surged in recent days. On-chain data generally still shows more BTC being withdrawn than deposited.

BTC profit rate is currently still high at 87% and current bitcoin moves are all profitable. This is a sign of profit taking when the price is rising and the market is positive. The Grayscale Premium Index has grown and is at (-12%) and has not yet seen strong interest from large investors.

Even so, recently there have also been a number of large companies that have publicly purchased more GBTC shares. Investment bank Morgan Stanley Bank bought up to 6.5 million shares of Grayscale Bitcoin Trust (GBTC) for more than a dozen investment funds, with each share trading at $37.82, or about $240 million. Now, Morgan Stanley becomes the second largest holder of GBTC after Cathie Wood’s ARK Invest (ARK owns over 9 million GBTC).

Miller Opportunity Trust, a hedge fund owned by billionaire investor Bill Miller has also revealed that it holds 1.5 million shares of GBTC. The hedge fund’s GBTC holdings bring its Bitcoin investment to a value of $58 million or nearly 1,200 Bitcoin (according to the fund’s SEC filing).

It is understandable that the Miller Opportunity Trust investment fund invests in GBTC because billionaire Bill Miller has invested in Bitcoin very early. According to Business Insider, billionaire Bill Miller has been buying Bitcoin since its price was only 200 USD (in 2015). He has also stated that the average price of his BTC is only around $500. If he continues to hold, then Bill Miller’s BTC investment has grown by about 9000%.

Recently, Fidelity also made a prediction that BTC price could reach 1 million USD/BTC by 2026. Fidelity is one of the largest global investment companies, founded in 1946, managing $ 10.4 Trillion USD ( as of March, 2021).

If BTC reaches a price of 1 million USD in 2026, then Bitcoin’s own capitalization is about 20 trillion USD, larger than any asset, the capitalization of any company currently (the current capitalization of gold is more than 11.5 billion USD). trillion USD). And that would be close to 20% of the US stock market capitalization, or more than 16% of the world’s bond markets. Fidelity’s BTC price prediction number is very large, can the price of BTC reach this price?

The SEC said that the opportunity to get a Bitcoin Future ETF fund is entirely possible, so many companies have also quickly submitted applications to open this fund. MaryLand-base company is also one of them.

Following El Salvador, the Cuban government has said that it will recognize the management of cryptos used for payments on the island. The popularity of such currencies has increased among a tech-savvy group in Cuba as it has become increasingly difficult for them to use dollars, in part due to tough embargo rules imposed under the rule of law. former President Donald Trump.

Uber’s original funder, Bill Gurley, has revealed that he is investing in Ethereum. Bill Gurley confessed that he became interested in crypto quite late but has faith in the Ethereum community. He also said, “I was captivated by the Ethereum community. The projects on Ethereum are more pragmatic, the community seems open to change and are basically making some changes that I think will reduce fees and will be very beneficial.”

Gurley also said he is very interested in ETH 2.0 and that POS will be to ETH’s advantage. Currently, the inflation of Ethereum is already lower than that of BTC. As shared by Lucas Outumuro, ETH inflation is 3574 ETH (1.11% annualized) while, BTC net inflation: 900 BTC (1.75% annualized).

Problems with the Ethereum network

Just a day back, Ethereum’s blockchain split in half, thanks to mining caused by consensus errors on the network’s nodes. According to Ethereum developer Marius van der Wijden, unidentified individual(s) monetized a security vulnerability affecting older Geth versions.

Geth is one of the software to run Ethereum’s node servers. Currently, there are more than 5,000 Ethereum nodes and Geth software is the most popular software to run these nodes.

Before the error, more than half of all nodes were running on older versions that had not updated to the latest version of Geth. A group of people found and took advantage of some vulnerabilities in an old version of Geth that caused some node machines to become out of sync with the network. After that, a chain split occurred, 54% of the nodes split from the main network.

The Ethereum development team has released version v1.10.8 to resolve the issue. Up to now, most of the node machines have been updated to the latest version of Geth software. The situation has gotten better, the majority of miners are running updated versions of Ethereum and the price is barely affected.

Several similar errors have occurred before. As of April, the second largest Ethereum client, Open Ethereum, experienced a consensus error where the said client’s nodes failed to sync with the blockchain. A similar scenario played out before that, in August 2020. However, the recent incident is almost one of the biggest to date.

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