BBBY - What Is Going on With the Grayscale Bitcoin Trust (GBTC)?
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Grayscale Bitcoin Trust (OTCMKTS:GBTC) stock is in the news Wednesday as a falling price has some investors jumping in hoping for a recovery.
Grayscale Bitcoin Trust is a company that allows investors to gain Bitcoin (BTC-USD) exposure without directly investing in it. As such, the price of GBTC stock is closely tied to the price of BTC.
That’s where the recent movement surrounding GBTC comes into play. The crypto market has been in a bit of a tizzy lately and Bitcoin is no exception to this. As a result, the crypto has been falling lately and currently trades for about $16,513.40 per token as of this writing.
What’s Behind That Fall?
The collapse of FTX is to blame for the recent bearish sentiment surrounding the crypto market. The crypto exchange is filing for bankruptcy after rival Binance liquidated $530 million worth of FTX (FTT-USD) the native token of the platform.
This resulted in other crypto traders doing the same, which caused the value of FTT to plummet. Investors will note this came after a report pointing out that Alameda Research, a sister company to FTT, had most of its value tied up in FTT.
And while this has been causing major problems for crypto lately, not everyone is selling on the news. With GBTC stock falling, investor Cathie Woods has decided to increase her stake in the company. She bought 315,259 shares of the stock through Ark Investment Management. Woods is likely hoping for a rebound to GBTC once all the FTX drama dies down.
GBTC stock is down 7.5% as of Wednesday afternoon and is down 73.7% since the start of the year.
Investors looking for more of the latest stock market news today are in luck!
We’ve got all of the most recent stock news traders need to know about on Wednesday! That includes everything happening with shares of semiconductor stocks, Bed Bath & Beyond (NASDAQ:BBBY) stock, and Tattooed Chef (NASDAQ:TTCF) stock today. You can find all of that news at the following links!
More Wednesday Stock Market News
- Why Are Semiconductor Stocks MU, NVDA, INTC, AMD Down Today?
- Why Is Bed Bath & Beyond (BBBY) Stock Down Today?
- Why Is Tattooed Chef (TTCF) Stock Down 19% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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