Investment firm Rothschild Investment increased its stake in the Grayscale Bitcoin Trust by more than 300% in the second quarter of this year, so it now owns more than 140,000 GBTC shares.
Rothschild Investment Corp.a prestigious American investment firm with 113 years of history, presented a report before the Securities and Exchange Commission (SEC) of the United States, showing their participation in the funds of cryptocurrencies from SEC-regulated digital asset management firm Grayscale Investments.
According to the filing, Rothschild Investment tripled its investment in Grayscale’s bitcoin mutual fund, the Grayscale Bitcoin Trust (GBTC) during the second trimester. The presentation shows that Rothschild Investment now owns a total of 141,405 GBTC shares, valued at more than $3.39 million as of the date of this publication. As of March this year, in its first quarter financial report, the investment firm declared 38,346 GBTC shares, so Rothschild Investment’s exposure to Bitcoin (BTC) grew 360% in just 3 months.
The financial report presented by the investment firm shows that its participation in the fund of Ethereum (ETH) Grayscale, the Grayscale Ethereum Trust (GETH), also increased during the second quarter. Currently, Rothschild Investment owns 279,119 GETH shares, showing a 5% growth in its exposure to this cryptocurrency. This investment is valued at more than 4.6 million dollars, so Rothschild Investment maintains about 8 million dollars invested in both cryptocurrency funds.
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Crypto Markets Crash
Bitcoin has lost more than 50% of its value since its all-time high seen in May, when the cryptocurrency topped $64,800 per unit. Since then, a series of strict regulations imposed by China against commercial activity and cryptocurrency miningthe bans on crypto miners in Iran, the warnings from global financial regulators about the exchanges and cryptocurrency exchange platforms, a strong dollar and little institutional interest in crypto assets have been key elements that are playing in favor of a bear market.
Recently, the analytics and metrics provider for the crypto industry GlassNode indicated in its Weekly Report No. 29 that the price of Bitcoin can still suffer a new drop. At the time of this edition, BTC trades in the markets with a value of $29,600 per unit, with its minimum price in 24 hours being $29,500.
Over $1.1 billion in AUM
The fall in value of Bitcoin, Ethereum and the main cryptocurrencies does not seem to affect Rothschild Investment’s vision regarding digital assets, since far from selling its stake in GBTC, it decided to triple it. Rothschild Investment is one of the largest and most prestigious investment firms in the United States and the world, with more than $1.1 billion in assets under management (AUM).
This firm has been investing in Grayscale’s GBTC since 2017. Its participation in the GETH fund began last April, with the purchase of 265,302 shares according to the document filed with the SEC at that time.
On the other hand, Michael Sonnershein, CEO of Grayscale, maintains that the volatility of bitcoin and cryptocurrencies in the short term will not affect institutional investment. Data from GlassNode shows that many of the big BTC investors, known as “whales” are taking advantage of the bear market to buy and accumulate more bitcoins. Last week, GlassNode registered 17 new bitcoin whales. In total, these entities accumulate 64,429 BTC, valued at about 1.9 billion dollars at press time.
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