Many investors believe a U.S. bitcoin exchange-traded fund (ETF) will be approved by the Securities and Exchange Commission (SEC) shortly. International bitcoin ETFs now have over $4 billion in assets, and the Grayscale Bitcoin Trust (GBTC), with $22 billion in assets, could be converted soon.
Since its OTC inception 8.5 years ago, GBTC returned almost 60x which was well ahead of the leading leveraged ETFs. The Bitcoin Trust actually delivered 62% annualized while the S&P compounded at 11%. However, over the past 1.8 years, GBTC underperformed the S&P showing that top long-term investments do not always outperform short-term.
Clearly, all of the leading long-term growth investments above require investor patience at times. People should also remember that Bitcoin was the world’s fastest asset to reach a $1 trillion market capitalization, getting there in just 12 years.
ETF PM has long positions in both the Bitcoin Trust (GBTC) and Ethereum Trust (ETHE).
See prior notes: 8/21, 5/21b, 5/21, 4/21c, 4/21b, 4/21, 3/21c, 3/21b, 3/21, 2/21, 1/21, 12/20, 11/20b, 11/20, 10/20, 12/17.
