Posted August 30, 2021
By Aaron Gentzler
In this Corner, Bitcoin…
In answer to a 21st-century investing conundrum, a reader writes: “Easy decision for me at this point: Bitcoin, obviously. This is the digital age. Get on board. Gold may have another run. Bitcoin will exceed that run.
“So, get on board for the next 50 years, not just the next couple years.”
Our next contributor agrees, adding his favorite way to invest in crypto: “I agree with taking some cash and investing in major cryptos. A good way to add exposure to Bitcoin is to invest in Grayscale Bitcoin Trust (GBTC). I purchased some shares on 8/18, and shares are already up 4% at the time of writing.”
One important distinction -- GBTC trades on the over-the-counter market. More on that below…
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Your Rundown for Monday, August 30, 2021...
Morgan Stanley & Grayscale
First, here’s a handy explanation:
Now that you have a better understanding of the OTC market, more on Grayscale Bitcoin Trust.
According to 2021 SEC documents, the largest U.S. bank Morgan Stanley -- and the world’s fifth-largest bank -- purchased 6,491,686 shares of GBTC worth $253.17 million.
“Grayscale has been one of the primary spots for institutions to land their crypto-money in, and with Grayscale Bitcoin Trust (GBTC),” says an article at AMB Crypto, “we can see more institutions buying in.”
For sure… But here’s the main point: “[Morgan Stanley’s] trust in the digital asset speaks volumes about the momentum behind the world’s largest crypto.”
Another important distinction?
At least in the short term, it appears GBTC precisely mirrors Bitcoin’s price action. Not so. While Bitcoin has ripped 323% higher over the last year, GBTC has lifted about 190%. And that divergence only increases when you look at the last five years.
So, if you’re considering exposure to Bitcoin, it’s probably advisable to invest directly in the flagship crypto.
Market Rundown for Monday, Aug. 30, 2021
S&P 500 futures are up 5.5 points to 4,510.
Oil’s up 0.26% to $68.92 for a barrel of West Texas Intermediate.
Gold’s at $1,817.30 per ounce, down 0.13%.
Bitcoin has pulled back 2.43% at the time of writing to $47,630.
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Enjoy the last few days of summer… Take care.
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