Bitcoin has already managed to land a gut punch to the fiat currencies in the monetary arena. It is now preparing to enter the fighting cage to take on a previous heavy-weight champion gold. During the past few weeks, it has been evident that gold has been unable to rise in the OTC markets against the flagship currency. It is now the second round, and both traded commodities are facing off each other in terms of asset class derivatives.
Mike McGlone, Chief Commodity Strategist at Bloomberg, has placed all his bets on Bitcoin for the upcoming brawl of the century. In a recent tweet, McGlone gloated that the upcoming Grayscale BTC ETF is going to upstage the SPDR Gold shares and even surpass them. These comments have started a conversation about Bitcoin ETF’s probable approval under the context of new SEC chief Gary Gensler’s appointment.
Gold Market to Stay in the Bear Corner for a While
At the moment, Grayscale has the largest holdings of Bitcoin in the world, and it has announced plans to convert the Grayscale Bitcoin Trust into an ETF. While the initial application submission to SEC has not been accepted, Grayscale management has shown interest in keep trying and being the first BTC ETF in the United States.
In his recent tweets, McGlone shared that Bitcoin listings and rising derivatives have become an ideogram for the diminishing price momentum potential for the gold market. He further added that the biggest tracker of Gold in the world, SPRD Gold shares, would lose its leading position to Bitcoin ETF introduced by Grayscale. The difference would be in terms of the allocation of funds between the two leading asset class commodities.
Grayscale Adding Bitcoin to its Reserves Periodically
The Grayscale Bitcoin Trust keeps gaining on its altcoins treasury. The trust also has other digital tokens like Stellar, Litecoin, Bitcoin Bash, but BTC trust remain its focal point for the time being. Another Bloomberg analyst Eric Balchunas also reiterated the comments made by McGlone. Balchunas even added a six-week timeline for Bitcoin Gold overtake.
Meanwhile, the Grayscale crypto trusts are strengthening by expansion, as the asset management added five more trusts, namely BAT, MANA, LPT, FIL, and LINK, over the weekend. In this venture expansion round, Grayscale invested in $1.6 billion worth of digital assets. Both McGlone and Balchunas agree that Bitcoin could go higher than $800,000 and leave behind strong contenders like Amazon.