Grayscale Investments has proceeded with the private placing of its Grayscale Bitcoin Trust (GBTC) shares.
In a recently released press statement, the company said the private placing of its shares is periodically offered to certified investors for an everyday subscription. The practice is further explained in Regulation D, Rule 501(a) of the Securities Act.
Conventional Investment Framework
GBTC shares are devised to allow investors to place money in bitcoin (BTC) through a conventional investment framework. The shared are expected to correspond closely to BTC values. However, these shared are held in the investor’s name instead of the cryptocurrency.
Grayscale’s announcement also revealed that one GBTC share is presently equal to 0.00097876 Bitcoin. At the moment, GBTC allegedly holds more than $2.66 billion worth of assets under management. It’s a clear uptick from the previous months.
The company reported back in May that out of the $2.1 billion assets it has under management, $1.97 billion were held in Grayscale’s Bitcoin Trust.
Grayscale Investments had also noted that based on research, bitcoin had risen to 47% the whole of May. This was during the volatile trade war between China and the United States. The company also emphasized that while BTC was a high-performing asset at that time, the Chinese yuan’s value dropped.
The investment company looks at this as confirmation of the notion that bitcoin thrives when conventional assets depreciate or flounder.
Matthew Beck, the director of Greyscale’s investment and research, said that even though it’s early days in Bitcoin’s cycle as an asset that can be invested in, they have already identified proof that supports the theory that the token can be used as a hedge in the event of a worldwide liquidity crisis.