Trading Volume Rises On Grayscale With Increased Interest In Crypto

By Rishma Banerjee

2019 is seeing a sharp rise in the trading volume on the Grayscale Investment’s Bitcoin Investment Trust (GBTC), thanks to the increased interest of investors, according to crypto enthusiasts. The first half of the year saw GBTC investments under $500 million per month, but by the end of June, volumes went up to nearly $2 billion.

TradeBlock tweeted,

“Trading volumes for @GrayscaleInvest’s Bitcoin Investment Trust (GBTC) have risen considerably over the year as public equity investors warm up to #bitcoin…”

The top cryptocurrency by market capitalisation, Bitcoin, has had a good run so far this year, and its dramatic recovery has increased coverage for Bitcoin on national mainstream media outlets, increasing awareness. This has subsequently drawn investor attention, although some remain sceptical of the direct ownership and the anonimity behind Bitcoin.
Grayscale’s platform provides a relatively simple avenue for legacy investors to enter. Cryptocurrency exchanges present a whole new set of nomenclature for investors along with security risks which might get tedious.
Grayscale allows investors to participate indirectly. By owning shares in GBTC, investors do not hold coins directly but can still realize gains and losses. This provides a bridge between legacy investors and the cryptocurrency marketplace.
The primary principle for Bitcoin is direct peer-to-peer payments. While investors in GBTC may enjoy some of the market growth in Bitcoin, they do not actually participate in the network itself, only indirectly. Bitcoin becomes only good for store of value and not a payment option for these investors. If the market worsens, the use of crypto is lost resulting in a net negative for the network as a whole.
Despite its unconventional investing methods, interest in Bitcoin is on the rise. With growing popularity and uses across the world, one can hope that it reaches price stability in due time.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.

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