Well-known investors believe that the value of Bitcoin investment trust is overestimated


nnnSome of the well-known investors on the Bitcoin Investment Trust (Bitcoin Investment Trust) valuation of 1.8 billion doubt that its value is overvalued, and there is a certain risk. In general, the valuation of the fund is so high mainly because it is the first publicly traded bit currency investment tool. As the digital money market continues to grow, more and more investment instruments are generated, the fund may face new challenges.n
nnTranslated by: Inan
nThe Bitcoin Investment Trust is the first publicly traded bit-currency-related investment tool whose value has risen by 1,600% in two years.n
nAt present, the trust market value has reached 1.8 billion, making some well-known investors are worried.n
nInvestor Andrew Left is known for predicting when the stock of the overvalued company is down, arguing that the valuation of the bitco investment trust is “completely absurd” and warns of the structure of the fund.n
nThe trust is operated by Grayscale Investments, an investment firm that specializes in digital money, to track the price of Bitcoin. In view of the price of Bitcoar more than $ 4,700 and the company holds 174,174 bitco, the actual book value of about $ 820 million. In other words, the market value of the fund is twice the assets held by it.n
nOne of the biggest attraction of the fund is its ability to trade at the price of Bitcoin, without the need to actually buy Bitcoin directly. Left thought it was another dangerous signal, he pointed out:n
nn”Grayscale kept the bitcores even without insurance.”n
nnThe value of the Bitcoin Investment Trust has risen 726% this year, following an unprecedented price rally. In contrast, the price of Bitcoin rose only 400%. Therefore, this high premium for new investors may be a problem.n
nThe fund is the first of these types of funds, which is also an important factor in its high valuation. However, the digital money market is growing rapidly. Other similar funds will undoubtedly enter the market, which will be on the valuation of special currency investment trust caused great pressure.n

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