As Bitcoin hovers around the $19,000 mark, analysts at Bloomberg suggest that a range of indicators promotes bullish sentiment for the cryptocurrency.
A new report at Coindesk shows Bloomberg analysts citing three types of indicators favoring future Bitcoin advances – “macroeconomic, technical and demand” indicators.
Hidden in the middle of this story is a very interesting development that illustrates how the concept of a Bitcoin exchange traded fund could be abstracted into something much more feasible than what the U.S. Securities and Exchange Commission has been batting around for years.
Omkar Godbole reports that the Grayscale Bitcoin Trust has expanded its Bitcoin holdings from around $2 billion to $10 billion, and buying 70% of all newly minted Bitcoins this year.
Looking at the details, the way Grayscale Bitcoin Trust works is that investors are able to trade a fund roughly tracking Bitcoin values.
“The Grayscale Bitcoin Trust is a financial vehicle that enables investors to trade shares in trusts holding large pools of Bitcoin,” writes Robert Stevens at DeCrypt. “Shares in the fund track the price of Bitcoin, but only roughly. Grayscale also offers several other exchange-traded products, tracking Ethereum, Bitcoin Cash and Litecoin among others.”
This is essentially what an ETF does, so it’s big news for investors who have been waiting patiently for the US SEC to approve an actual ETF on the market.
It also shows the kinds of buy-in and enthusiasm that Bloomberg refers to as “macroeconomic and demand” indicators.
The bottom line is that Bitcoin has already taken off and nearly doubled its value within just a few months, and analysts are saying that it has further to go. Also, new investors have choices in either buying Bitcoin directly or going into funds like GBT. However, it’s never recommended to act based on other people’s research and opinions. Check it out for yourself and evaluate whether Bitcoin is a buy at $19,000 or not.
