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Grayscale's Bitcoin Trust fund has surged by 375% in the past 4 months.

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Grayscale

Since its launch in 2013, Grayscale's Bitcoin Trust Fund (GBTC) has become one of the largest Bitcoin investment products globally. So far, GBTC has outperformed most traditional assets this year and has become one of the most active traded securities in the U.S. over-the-counter trading group.

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GBTC Performance
Grayscale's Bitcoin Trust Fund has had an astounding year, with its value growing by 375% since February. The over-the-counter trading price hit a low of $3.67 on February 6 and surged to $17.40 on June 26. In comparison, Bitcoin rose from $3,330 to $13,920 during the same period, an increase of only 318%.

Source : otcmarkets

Underperformance of Traditional Hedge Assets
Gold has long been considered the preferred store of value during financial storms. Its limited supply and long history of trading make it an ideal hedge asset.

However, the trade war between the U.S. and China has shown that Chinese investors prefer investing in cryptocurrency assets over gold. Despite global economic turmoil, gold only saw a 9% increase from early February to the end of June.

Source : tradingview

Similar price behavior can be observed in the S&P 500 Index, which is a stock market index based on the market capitalizations of 500 large companies in the U.S. The index grew by 7.65%, while GBTC saw a 375% increase during the same period.

Meanwhile, the popular investment tool U.S. 10-year Treasury note continued to decline over five months, dropping from $2.71 to $1.99, resulting in a 27% loss for investors.

Source : tradingview

A report indicates that as institutional investors' interest in Bitcoin continues to rise, they seem to be turning to GBTC to avoid the risks associated with owning cryptocurrency. This could be a reason for GBTC's outperformance compared to Bitcoin.

Capitalizing on this momentum, Grayscale has been heavily promoting "Drop Gold" on social media and television, claiming that the era of gold is over.

It appears that this advertising campaign has attracted more investors. Following its launch on May 1, GBTC's value surged by over 160%. The company is reportedly preparing to release its second commercial.

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