Grayscale Investments is the largest fund that manages digital assets and attracts large investors from the stock market. The fund actually acts as a link between the traditional and cryptocurrency markets.
Grayscale is a subsidiary of the Digital Currency Group, which owns the news site CoinDesk. Grayscale was founded in 2013 and began offering cryptocurrency investment products in a private placement to accredited investors. The fund later received a public trading permit from the US Financial Industry Regulatory Authority (FINRA).
What is GBTC
The Grayscale Bitcoin Trust (GBTC) is the company’s flagship product, which is nothing more than a traditional stock. With Grayscale, accredited investors gain access to cryptocurrencies without the need to actually own Bitcoin.
The company’s financial instruments are backed by cryptocurrency and their value is pegged to the digital currency. While the number of such products is limited, however, as the scope of cryptocurrencies expands, it is possible that stocks backed by Shib, Binance coin and other altcoins will be released in the foreseeable future.
The Grayscale Bitcoin Trust functions similarly to classic commodity exchange-traded funds (ETFs). However, ETFs are available to all investors, while GBTC can only be accessed by investors accredited in the US, as a bitcoin trust is not yet registered with the SEC.
To invest in a digital asset, investors have to offer a price higher than the current BTS price.
What are the investment benefits of Grayscale?
Investing in Bitcoin with a surcharge of about 20% looks rather strange at first glance. Still, the move is well worth it for many investors.
To invest in GBTC, investors do not need to convert fiat currency to digital and organize the storage of digital assets. Instead, the investor buys a share of Grayscale’s Bitcoin Trust, which is held by a custodian partner.
Grayscale, a public company, recently began reporting to the SEC, which means that by using its products it is possible to minimize the risks associated with hacks, fraud, and other security threats. Buying shares in a public company instead of digital assets makes it easier to pay taxes.
GBTC Price Prediction
The price of GBTC is closely related to fluctuations in the Bitcoin exchange rate, which is going through another difficult period. Still, Walletinvestor is optimistic. According to the agency’s forecasts, in the long term, the share price is expected to increase from the current level of USD 24,981 to USD 84,708 by the beginning of May 2027.
GBTC Price Prediction for 2022
According to the results of technical analysis, the price is expected to rise during the year. It is likely that by December GBTC will be trading in the range of $33.1-$35.2.
GBTC Price Prediction for 2023
The general upward trend is expected to continue. At the beginning of the year, a correction is possible with a further resumption of growth to $44-46.
GBTC Price Prediction for 2024
The opening of the year is projected at around $47. In the first half of 2024, the price will overcome the psychologically important mark of $50 and may reach $59 by the end of December.
GBTC Price Prediction for 2025
The continued adoption of cryptocurrencies will be an incentive for further growth in the price of GBTC. Technically, the next target until the end of 2025 is at a level just above $70.
GBTC Price Prediction 2026-2030
The expected price of GBTC at the beginning of the period is around $70.7. By the end of 2027, the price is highly likely to reach 84.708. According to analysts from DigitalCoinPrice, the price will not overcome the three-digit barrier until 2029, and in 2030 it will reach $115.
While the GBTC price forecast 2030 is quite optimistic, remember that all assets associated with cryptocurrencies are high-risk. Do your own research before investing in them.