Bitcoin is Trading at Extreme Premium in Stock Market

sergey44 (66)in #crypto • 7 years ago (edited)

The demand toward Bitcoin is also increasing at a rapid rate in the public stock markets. Some ETFs and instruments including Bitcoin Investment Trust are being traded with extreme premium rates. In the US stock market, accredited traders and institutional investors are buying into Bitcoin with instruments such as GBTC.Although many investors have moved onto regulated trading platforms, such as Kraken, Coinbase’s GDAX and the Winklevoss twins’ Gemini, a large portion of accredited investors still rely on publicly quoted Bitcoin securities such as GBTC to invest in the digital currency.Currently, the share price of GBTC demonstrates a staggering 48.92 percent premium rate for investors in the public stock market. The global average Bitcoin price, calculated by averaging the price of each Bitcoin exchange market, including the US, South Korea, Japan and China at the time of writing is $2,767.In the public stock market, through instruments such as GBTC, Bitcoin is being traded at well over $4,000. In the US, some of the largest financial institutions and investment firms including Fidelity Investments, which manages over $2.13 tln worth of assets, have revealed that they have been investing in Bitcoin for a long period of time, even testing some of its unique applications.Abigail Johnson, Fidelity CEO, said:"I love this stuff – Bitcoin, Ethereum, Blockchain technology – and what the future holds. I am still a believer – and it's no accident that I'm one of the few standing before you today from a large financial services firm that hasn't given up on digital currencies."More to that, the country’s leading financial institutions including Goldman Sachs and Bank of America have also started to provide extensive coverage on Bitcoin. With Goldman Sachs providing a highly optimistic outlook on Bitcoin price and Bank of America highlighting some measures that can demonstrate Bitcoin’s exponential growth.