Rothschild Investment has tripled its stakes in the Grayscale Bitcoin Trust (GBTC).
— Bitcoin Magazine (@BitcoinMagazine) July 20, 2021
In fact, last year the investment company had invested $ 235,000 to buy shares of the GBTC fund, effectively taking exposure on the price of bitcoin, given that the trend of the GBTC share price follows that of bitcoin.
It recently told the SEC that it had reached 141,405 shares in the second quarter of 2021 , or more than three times the 38,346 held until the end of the first quarter, so it added 103,059.
It hasn’t been clarified when they were bought or at what price, but given that the second quarter started in April, and ended in June, it’s safe to imagine that it may have bought after the price drop in mid-April.
To date, each GBTC share corresponds to 0.000939715 BTC , or just under $ 30, so the approximately 141,000 shares held by Rothschild Investment have an approximate value of $ 4.2 million. In the first quarter of the year, the position of Rothschild Investment opened on bitcoin thanks to GBTC was 1.92 million.
Who are the Rothschilds who bought Grayscale’s bitcoin stock
However, it should be noted that the Rothschild Investment has nothing to do with the famous Rothschild banking family.
The curious thing is that this investment firm’s investments in the Grayscale Bitcoin Trust seem to have occurred when the price of bitcoin was low, or after a noticeable drop, and that if initially it was probably only a small test, with a very large figure. limited, now instead the amount invested is starting to be significant, although perhaps not yet significant.
On the other hand, the CEO of Grayscale himself, Michael Sonnenshein, recently revealed that the average profile of GBTC investors is that of those who do not focus on short-term fluctuations in the price of bitcoin, but of those who invest with medium or long-term objectives. .
In other words, it seems that Rothschild Investment does not intend to operate in this market to carry out short-term speculations on the wide volatility of the bitcoin price, but that it has initially chosen to make a small medium-term investment when the price of BTC is it was around $ 10,000, and then to make another a little more substantial when the price fell below $ 40,000.
The very fact that he indirectly bought bitcoin at a price probably below $ 10,000 and then didn’t sell them even when the price rose above $ 60,000 obviously means that they didn’t buy them just to sell them for profit as soon as possible.