Investors are now considering Bitcoin as an alternative to Gold for Grayscale’s Bitcoin Trust (GBTC) saw the cumulative inflows in October, while the gold exchange-traded funds (ETFs) have seen “most outflows” from mid-October.
GBTC lets the investors gain exposure to the flagship cryptocurrency without worrying about the private keys or selecting a bitcoin wallet. The crypto asset manager holds the fund for a fee. ETFs are the type of security that tracks an underlying asset or index.
A report published by analysts at JPMorgan says that the contrast seen among GBTC’s inflows and Gold ETF outflows “lends support to the idea that some investors that previously invested in gold ETFs such as family offices, maybe looking at bitcoin as an alternative to gold.”
Grayscale’s bitcoin product’s investment is in demand from both retail and institutional investors, before pointing out that BTC’s potential long-term upside is “considerable” if the cryptocurrency managed to compete with the precious metal as an “alternative currency.”
It is also significant for Grayscale launched an ad campaign that tells the investors to drop gold and buy bitcoin. JPMorgan’s report came when the corporate support for bitcoin rose, as billion-dollar business intelligence firm Microstrategy has made a $425M bet on BTC. At the same time, square bought $50M worth of the cryptocurrency.
PayPal also recently started letting its consumers use bitcoin, bitcoin cash, litecoin, and ether in its platform. Dan Schulman, the president and CEO of PayPal, has revealed that he believes it may increase the usefulness of cryptoassets.
Also, Stanley Druckenmiller, a billionaire investor who held George Soros’s money in the 1990s, praise Bitcoin today. He stated:
“It could be an asset class that has a lot of attraction as a store of value to both Millennials and to the new West Coast money—and as you know they’ve got a lot of it, it’s been around for 13 years [actually, 12] and with each passing day it picks up more of its stabilization,” he said in an interview.
Druckenmiller’s comments arise as Bitcoin’s price breaks past $15,000, over four times its price in March, and around $5,000 more than its price at the start of last month.
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