Miller Opportunity Trust, a value-focused fund led by famed investor Bill Miller, believes that Bitcoin has solid upside potential as a form of “digital gold.”
In a new investor report, the fund says it saw Bitcoin’s crash in May as an opportunity to acquire the asset through the Grayscale Bitcoin Trust (GBTC) at a discount.
“We have been observers of Bitcoin for a long time and during the quarter, the Fund received approval to invest in Grayscale Bitcoin Trust (GBTC), which is an open-ended grantor trust fully invested in Bitcoin. In the quarter, as Bitcoin fell, the trust traded at one of its larger discounts to its underlying holdings in Bitcoin providing additional upside potential.”
The $2.8 billion fund says that with Bitcoin being a type of digital gold, it should have considerable upside potential given how small BTC’s market cap is compared to gold’s.
“We believe Bitcoin has significant upside potential as a form of ‘digital gold’. With gold’s market capitalization greater than $11 trillion, Bitcoin’s current cap close to $600 billion would have a long way to go to catch up. We are early in a continuing adoption curve and Bitcoin will be volatile, but we think the risk-reward is attractive.”
In April, Miller said that he believed Bitcoin was in the early innings of a long adoption curve, and was bullish on the strict scarcity of the world’s leading cryptocurrency.
“It’s the only economic unit that I’m aware of that is both infinitely divisible and instantly transportable, where the supply is completely separate from the demand. No matter what the demand is for Bitcoin, the supply is 21 million. There’s an estimated 47 million millionaires in the world, and so if each millionaire wanted one Bitcoin he or she couldn’t have it. They’d have to settle for something less.”
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