Barry Silbert’s Bitcoin Investment Trust (GBTC) has seen unprecedented demand, causing its shares to trade up to 80 percent higher than the cost of a Bitcoin.
As Seeking Alpha reports on Friday, the asset, which remains the only choice for investors looking to get exposure to Bitcoin, saw vastly inflated asking prices since Bitcoin’s price itself soared to almost $1,900.
“The influx of capital into the digital currency has been extremely notable and is getting a fair amount of media coverage,” it commented on the phenomenon. “As hype ramps up, speculation ensues, just as with any type of asset, and bubbles start to form.”
The bubble sentiment has been shared by cryptocurrency industry figures such as Vinny Lingham and Tuur Demeester, while others have disputed the idea that Bitcoin is overpriced.
Silbert, meanwhile, who has also launched an Ethereum Classic private fund, will no doubt be celebrating.
At the same time, the US Securities and Exchange Commission is still sitting on the Bitcoin and now Ethereum (ETH) ETF.
Having refused the former once, speculation is rife as to its fate the second time around, with former Bitcoin Foundation Executive Director Bruce Fenton stating this week he considered it to have “a good chance” compared to before.
I had two Bitcoin transactions today with fees over $9 ea. & another 2 which are still unconfirmed after 1 hr 50 min. pic.twitter.com/9o03l8jFPD— Bruce Fenton (@brucefenton) May 10, 2017