Miller Opportunity Trust, a value-focused fund led by famed investor Bill Miller, believes that Bitcoin has strong upside potential as a type of “digital gold.”
In a brand new investor report, the fund says it noticed Bitcoin’s crash in May as a possibility to accumulate the asset via the Grayscale Bitcoin Trust (GBTC) at a reduction.
“We have been observers of Bitcoin for a very long time and throughout the quarter, the Fund acquired approval to put money into Grayscale Bitcoin Trust (GBTC), which is an open-ended grantor belief absolutely invested in Bitcoin. In the quarter, as Bitcoin fell, the belief traded at one in every of its bigger reductions to its underlying holdings in Bitcoin offering extra upside potential.”
The $2.8 billion fund says that with Bitcoin being a kind of digital gold, it ought to have appreciable upside potential given how small BTC’s market cap is in comparison with gold’s.
“We consider Bitcoin has vital upside potential as a type of ‘digital gold’. With gold’s market capitalization better than $11 trillion, Bitcoin’s present cap near $600 billion would have a protracted solution to go to catch up. We are early in a seamless adoption curve and Bitcoin shall be unstable, however we predict the risk-reward is engaging.”
In April, Miller said that he believed Bitcoin was within the early innings of a protracted adoption curve, and was bullish on the strict shortage of the world’s main cryptocurrency.
“It’s the one financial unit that I’m conscious of that’s each infinitely divisible and immediately transportable, the place the availability is totally separate from the demand. No matter what the demand is for Bitcoin, the availability is 21 million. There’s an estimated 47 million millionaires on this planet, and so if every millionaire wished one Bitcoin she or he couldn’t have it. They’d must accept one thing much less.”
Disclaimer: Opinions expressed at The Daily Hodl are usually not funding recommendation. Investors ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your personal threat, and any loses it’s possible you’ll incur are your duty. The Daily Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Daily Hodl an funding advisor. Please notice that The Daily Hodl participates in affiliate internet marketing.
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