The institutional investment manager holds 30,454 shares of Grayscale’s
GBTC, according to a new SEC filing. And no, the firm is not part of
the Rothschild family dynasty.
Rothschild Investment Corporation, a leading Chicago-based financial
institution founded in 1908, has invested heavily in Grayscale’s Bitcoin
Trust, according to a Monday morning filing with the United States
Securities and Exchange Commission, or SEC.
Rothschild reported
owning 30,454 shares of GBTC as of Dec. 31, 2020, according to Form
13F-HR, also known as the institutional manager holdings report. In its
October filing, the firm reportedly owned 24,500 shares.
According to its corporate website, Rothschild Investment Corp was
founded in 1908 as Rothschild & Company. Its founders,
Monroe Rothschild and brother-in-law Samuel Karger, started the firm as a
full-service brokerage. However, it's not part of the Rothschild family
dynasty, according to Bloomberg.
GBTC represents publicly quoted shares of Grayscale’s increasingly popular Bitcoin Trust, which now has over $20 billion in assets under management. GBTC generated $217.1 million in average weekly inflows during the fourth quarter, a new record high.
GBTC currently trades at less than $34.00 per share.
Rothschild increased its exposure to Bitcoin (BTC) during a pivotal time in the cryptocurrency’s bull market. Bitcoin’s price nearly tripled in the fourth quarter before peaking near $42,000 in early January. Although price action has cooled off somewhat, BTC price is currently hovering around $34,000.
The
investment manager is one of several big-name institutional players to
enter the cryptocurrency market in the past year. This trend is expected
to continue as central banks and governments expand their monetary base to support the post-pandemic recovery. In this vein, Bitcoin is increasingly viewed as a monetary hedge against inflation.
Digital assets will be top of mind at this week’s Davos Agenda.
The summit, which is hosted by the World Economic Forum, features two
sessions focused on “resetting digital currencies.” Although the
discussions are likely to center around central bank digital currencies,
or CBDCs, they magnify Bitcoin’s disruptive impact on traditional
finance.
