Bitcoin Proxies Outperformed the Digital Currency Itself This WeekBy
Overstock.com, Bitcoin Trust, MGT Capital have surged
Bitcoin’s gains still dwarf that of most proxies this year
This week, for once, the proxy was the better buy.
Bitcoin-related stocks, often seen as a safer bet than the volatile cryptocurrency, have outperformed the digital token since Monday, after a dose of optimism brought on by its futures debut on the Cboe exchange spurred a crypto feeding frenzy. The Bitcoin Investment Trust surged 54 percent this week, while MGT Capital Investments and Overstock.com Inc. climbed 47 percent and 44 percent respectively. Bitcoin posted a 13 percent gain.
Crypto-mania has brought a long-term boost to related stocks. Overstock has posted gains of about 270 percent this year, while MGT Capital has climbed 450 percent. Bitcoin’s performance, with a meteoric year-to-date rise of more than 1,700 percent, still dwarfs that of most related assets. The Bitcoin Investment Trust, which owns the cryptocurrency, is the exception. The fund has surged 2,000 percent since January.