Grayscale Bitcoin Investment Fund Value Drops Below $1 Billion
The cost of the Grayscale Bitcoin Investment Trust (GBTC) reached the minimum value for 2018 and amounted to less than $1 billion, according to Diar.
Grayscale is the only trust in the United States operating with bitcoins. Though its value in dollars has decreased, the highest number of deposits in the first cryptocurrency was reported. It is stated that the total amount of bitcoins under GBTC management is 203,000 BTC, which is slightly more than 1% of the global turnover. Nevertheless, the deposit cryptocurrency inflow in December 2018 is lower than it was in early November 2018.
Despite the increase in bitcoin holdings, other GBTC financial products based on cryptocurrencies have not yet attracted the interest of investors. As follows from the source, the assets of the company’s eight projects amount to $56.4 million, which is 6% less than the total investment. It is also stated that this indicator — a percentage of the total amount — fell by 8% when Grayscale launched a fund to support the ZEN tokens.
The value of GBTC shares began to decline gradually as early as 2017 when the maximum in bitcoin price was recorded. From December 2017 to October 2018, the fund’s shares fell in price by 80%.
In July, Grayscale published a report stating that 56% of its profits in 2018 came from institutional investors. Despite the downward trend in the market, which confused speculators, the company noted paradoxical investments that had never been seen before.
As previously reported, the blockchain project TRON announced the launch of $100 million fund to finance the developers of blockchain games.