BTC marches to $5K as BIT fund gets flack

During Labor Day weekend could see $5,000 bitcoin pricing as the cryptocurrency rose above $4,800 early Friday morning.

The price rise came across most digital currencies as Asian markets continue to pile in as a hedge on North Korean missile firing concerns.

Thursday afternoon famed short seller Andrew Left, who made his bones by taking down Valeant Pharma, came out ripping into the Bitcoin Investment Trust.

The Bitcoin Investment Trust, founded in 2015, is a fund run by Grayscale Investments and designed to track bitcoin’s market moves. BIT holds 174,174 bitcoins, which equates to a total value of about $830 million, according Thursday’s close.

Left points out that BIT has a market value of $1.8 billion, which is more than twice the underlying value the asset — bitcoin.

“That alone is completely ridiculous, but on top of that they don’t even have insurance for the bitcoin that they are custodians of,” Left said on CNBC.

Many have called into question the value and premiums paid to get into BIT.

“For investors buying into the fund, such large premiums are a disaster waiting to happen,” Sumit Roy, an analyst at ETF.comwarned.

Left only had this comment on bitcoin’s value. “I’m not here to opine on the future of bitcoin…but the higher things go the thinner the air becomes.”

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