Bill Miller will invest about $300 million from the Miller Opportunity Trust into Grayscale’s Bitcoin trust as we can see more in today’s BTC news.
The announcement came soon after Bill Miller penned a letter about Bitcoin as a growing investment and the trusts like Grayscale’s are a part of the financial services that offered investors exposure to crypto. The investment trust Miller Opportunity is getting into BTC and according to a filing submitted to the US Securities and Exchange Commission by the trust, the company was founded by an American Investor and fund manager Biller Miller who is going to seek investment exposure to Bitcoin by investing in Grayscale’s Bitcoin trust.
The trust declared that it will stop once it is able to channel up to 15% of its assets into Grayscale’s BTC trust and to put this into perspective the trust holds about $2.25 billion dollars in asset under management which means that the fund will channel over three hundred million dollars into BTC through Grayscale’s Bitcoin trust.
The news came after Miller penned an income strategy letter calling BTC an “emerging and under-owned technology in an enormous addressable market” that has a logically consistent protocol and distributed governance. The Miller Opportunity Trust is not the first investor to channel money into BTC as the news came a week after Grayscale reopened its ETH trust and registered trusts for a dozen altcoins in the Delaware corporate registry.
Trusts like Grayscale’s Bitcoin trust or the ETH trust offer investors auditable ownership of crypto via traditional investment vehicles. Grayscale pools its BTC and eTH trust from private investors that seek more exposure to crypto. Its ETH trust now holds about $4 billion and invests money into crypto by charging 2% to the investors, selling shares in the trust on public trading desks. Using a trust to make usage of the growth of the crypto markets is one way to gain indirect exposure to Bitcoin but another way is to buy shares in a company that is converting wealth into a crypto-like Microstrategy.
Microstrategy holds more than $2.5 billion in Bitcoin and this is because its CEO Michael Saylor has a long-term investment plan based on his belief that BTC will yield higher returns than gold and will outlast the dollar. Exchange-traded funds will also be a cheaper alternative to the management fees from crypto trusts as all efforts to register an ETH with the SEC have been rejected.
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