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Grayscale Trust Would Soon Surpass the Biggest Gold ETF

According to data from Bloomberg, the Grayscale Bitcoin Trust is on track to surpass the largest gold-tracking ETF in the world. This data was brought to the fore by Mike McGlone. Bloomberg’s senior community strategist analyzed the price movement for Bitcoin and Gold side by side.

Over the years, Gold has gradually experienced growth in value at a much slower pace than Bitcoin. The massive growth of Bitcoin in the last ten years made it the investment of the decade.

The Rise of Bitcoin

Comparing statistics over the last ten years, in 2010 Gold had an average closing price of $1226 while Bitcoin had closed at $1. At the end of 2020 however, the tables had turned. The value of Bitcoin was approximately $31000 while Gold closed the year at $1765.

Almost no one saw this happening many years ago. While Gold has enjoyed a relatively stable increase in value over the years, its growth is no match with that of Bitcoin.

Why Grayscale Will surpass SPDR Gold Shares

From the data of both assets that have been gathered over the years, it is predicted that Grayscale Bitcoin Trust will surpass SPDR Shares (GLD). In 2004, GLD recorded the most significant AUM with over $57 billion.

This investment grew over the years and in 2020, it was recorded that GLD shares were worth some $80 billion. GBTC on the other hand was worth about $5 billion at that time. However, at the moment GBTC boasts of a total worth of over $40 billion.

Given the explosive growth of GBTC in comparison to GLD, Mike McGlone of Bloomberg projected that GBTC may eventually catch up with, and even supersede GLD in May or July 2021.

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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