For investors seeking momentum, Grayscale Bitcoin Trust ETF GBTC is probably on the radar. The fund just hit a 52-week high and soared 135.2% from its 52-week low of $39.56 per share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
GBTC in Focus
Grayscale Bitcoin Trust is the first Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of a security, while avoiding the challenges of buying, storing and safekeeping it directly. It owns and passively holds actual Bitcoins through its Custodian, Coinbase Custody. Grayscale Bitcoin Trust is a cheaper version of Bitcoin, charging 1.50% in annual fees from investors (see: all the Cryptocurrency ETFs here).
Why the Move?
Bitcoin has been an area to watch lately, given the meteoric rise in the world’s largest cryptocurrency. Bitcoin has soared to a new all-time high, surpassing $120,000 for the first time in its history. The explosive rally was driven by renewed institutional demand, robust spot Bitcoin ETF inflows and growing optimism surrounding global crypto adoption. The rally also reflects broader investor appetite for alternative assets amid a shifting macroeconomic landscape.
More Gains Ahead?
GBTC might remain strong, given its weighted alpha of 87.60 and lower 20-day volatility of 33.6%. There is still some promise for investors who want to ride on this surging ETF.
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This article originally published on Zacks Investment Research (zacks.com).
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