Leading Asset Manager Rothschild Investment Corp Increases Bitcoin Exposure Amid Market Crisis

In a filing with the United States Securities and Exchange Commission (SEC) on July 17, Rothschild Investment Corp revealed that it now owns 141,405 shares of the Grayscale Bitcoin Trust (GBTC). 

With the current amount of GBTC the firm owns compared to its previous record, the investment corporation quadrupled its exposure to Bitcoin (BTC) since April not minding the turbulence the crypto market has been facing recently. 

Since the beginning of this year, Rothschild’s exposure to Bitcoin has increased significantly. In April, the total GBTC shares it owned amounted to 38,346.

With the current value of one GBTC share sitting at 0.00082206 BTC, the total value of Rothschild Investment’s bitcoin investment is 116.2 BTC (approximately $3.5 million).

The financial institution offers services to clients who are interested in portfolio management, retirement plans, consulting, and investment advisory services and is based in Chicago, Illinois.

Rothschild Investment Corporation investment offers advisory services to over a thousand clients and manages about $1.7 billion in investment funds.

Rothschild Investment Corp did not just stop at owning BTC shares, the firm has also invested in Grayscale’s Ether (ETH) equivalent, the Grayscale Ethereum Trust. Some months back, it purchased 265,302 shares of the Grayscale Ethereum Trust, valued at $4.75 million. 

The purchase, like those made by other big institutions, boosted the shares of the Grayscale Ethereum Trust.

According to Grayscale Investments managing director Michael Sonnenshein,  the number of investors interested in ETH is on the rise.

Grayscale investments revealed that its Ethereum Trust had only 5.2 million shares as of 2019 but as of October 30, 2020, the figure skyrocketed since the beginning of the year and the investment product currently has 29.6 million shares outstanding.

The New York-based company Grayscale also has plans for its Bitcoin Trust fund, in which Rothschild now owns 141,405 shares.

Along the line of converting the GBTC product to an ETF, the company partnered with New York’s oldest bank BNY Mellon to become an asset servicing provider.

When the GBTC product gets converted to an ETF eventually, BNY Mellon will provide transfer agency and ETF services for Grayscale’s flagship product – GBTC.