Rothschild Investment Corp More Than Tripled Its Bitcoin Position

Rothschild Investment Corp shared in a new filing that it has more than tripled its bitcoin exposure through GBTC over the past quarter.

According to a filing with the United States Securities and Exchange Commission (SEC) from July 19, Rothschild Investment Corp has almost quadrupled its indirect bitcoin position since April, showing a “buy the dip” mentality during BTC’s recent price decline.

The document details that the investment manager based out of Chicago increased its holdings of Grayscale Bitcoin Trust (GBTC) shares to 141,405 from 38,346 over the last quarter. Rothschild’s indirect position in BTC now represents approximately $4.2 million, compared to $1.92 million in the first quarter.

GBTC shares attempt to become a proxy for the BTC/USD pair by tracking the bitcoin market price, less fees and expenses. As a result, it has become a popular investment vehicle among institutional investors seeking indirect exposure to the bitcoin price in dollar terms. The trust currently embarks $20.2 billion of assets under management.

Rothschild more than tripling their bitcoin position also comes amid the recent short-term price consolidation for bitcoin, demonstrating a “buy the dip” mentality by the institution.

Grayscale CEO Michael Sonnenshein also recently commented on the profile of GBTC investors in general, reiterating that they are not worried about short-term fluctuations in price. Instead, he said, “these are investors looking at their allocations over the medium to longer term…so any volatility is not something anyone is fazed by.”

Sonnenshein also gave an update on Grayscale’s plans for turning GBTC into an ETF soon. He said that “a bitcoin ETF in the U.S. is really a matter of when, not a matter of if.” He later added that his company is currently “looking for a couple of different points of maturation in the underlying market,” which he claims represents the “final stages of what regulators need to approve this type of product.”


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Rothschild Investment Corp Acquires Over 250M Shares in Grayscale ETH Trust

In a recent filing with the United States Securities and Exchange Commission (SEC), the Chicago-based Rothschild Investment Corp revealed that it has purchased 265,302 shares in Grayscale’s ETH trust, while also adding to its Grayscale Bitcoin Trust holdings.

The filing revealed that the total GBTC shares the company owns stands at 38,346, a boost from the 30,454 shares it owned in January. The Ethereum holdings with the group represent a new position.

There are speculations amongst market observers that the first quarter of the year has a lot of influx of institutional investment into the digital currency ecosystem through trusts such as Grayscale’s. The speculations are rife as this period coincides with the great push in the price of Bitcoin (BTC), Ethereum (ETH), and the entire cryptocurrencies as a whole.

The Rothschild Investment Corp was established in 1908 by Monroe Rothschild and brother-in-law Samuel Karger and the firm has no affiliations with the infamous Rothschild family dynasty. The firm is one of the earliest mainstream investment outfits to dabble into cryptocurrencies, owning as much as $210,000 worth of GBTC back in 2017 according to an earlier filing with the SEC. At the time, Bitcoin was priced somewhere around $2000 per coin.

The potentials for BTC to serve as a viable and functional store of assets for corporate firms is no longer disputable. Firms like business intelligence and software firm MicroStrategy Incorporated, electric automaker Tesla Inc and Square Inc amongst others rank as some of the outfits divesting their excess liquidity into the growing asset class. Besides the Rothschild Investment Corp, Chinese tech company, Meitu Inc is also a prolific Ethereum investor.

The digital currency ecosystem is still relatively new, and the flow of institutional funds by firms like Rothschild, and the other acclaimed crypto-backers will help fast-track the long-sought shift into the mainstream adoption era.

Image source: Shutterstock


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Bitcoin (BTC) $ 43,815.74 0.01%
Ethereum (ETH) $ 2,258.11 0.67%
Litecoin (LTC) $ 73.35 0.43%
Bitcoin Cash (BCH) $ 247.81 1.17%