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 financial before the United States Securities and Exchange Commission (SEC), showing his 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 investment fund, the Grayscale Bitcoin Trust (GBTC) during the second quarter. The filing shows that Rothschild Investment now owns a total of 141.405 GBTC shares, valued at over $3,39 million as of this writing. As of March of this year, in its first quarter financial report, the investment firm reported 38.346 GBTC shares, so Rothschild Investment's exposure to Bitcoin (BTC) grew 360% in just 3 months.
The financial report filed by the investment firm shows that its stake in the fund Ethereum (ETH) Grayscale’s own fund, the Grayscale Ethereum Trust (GETH), also rose during the second quarter. Rothschild Investment currently holds 279.119 GETH shares, showing a 5% growth in its exposure to the cryptocurrency. This investment is valued at over $4,6 million, so Rothschild Investment has close to $8 million 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 surpassed $64.800 per unit. Since then, a series of strict regulations imposed by China against trading activity and cryptocurrency mining, bans on crypto miners in Iran, warnings from global financial regulators about the exchanges and cryptocurrency exchange platforms, a strengthening dollar and little institutional interest in cryptoassets, have been key elements that are playing in favor of a bear market.
Recently, the provider of analytics and metrics for the crypto industry GlassNode indicated in its Weekly Report No. 29 that the price of Bitcoin can still suffer a further drop. At the time of this edition, BTC is trading on the markets with a value of $29.600 per unit, with the minimum price in 24 hours being $29.500.
Over $1.100 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, as far from selling its stake in GBTC, it decided to triple it. Rothschild Investment is one of the most prestigious and important investment firms in the United States and the world, with more than $1.100 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 Valid identity document filed with the SEC at that time.
On the other hand, Michael Sonnershein, CEO of Grayscale, argues that the volatility of bitcoin and cryptocurrencies in the short term will not affect institutional investment. GlassNode data shows that many of the large 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 $1.900 billion at the time of writing.
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