Rothschild Investment tripled its stake in Grayscale Bitcoin Trust (GBTC).
— Bitcoin Magazine (@BitcoinMagazine) July 20, 2021
“Rothschild Investment Corp. tripled its Bitcoin investment in July, adding more than 100,000 shares of Grayscale.”
In fact, last year, the investment firm invested $235,000 to buy GBTC fund shares, gaining exposure to the price of bitcoin, as the trend in the price of GBTC shares follows that of bitcoin.
Recently, however, said to the SEC that it had hit 141,405 shares in the second quarter of 2021, more than triple the 38,346 shares it held at the end of the first quarter, then added 103,059 shares.
It’s not clear when they were bought, or at what price, but since the second quarter started in April and ended in June, it’s safe to assume they may have bought after the price drop in mid-April.
As of today, each share of GBTC is worth 0.000939715 BTC, or just under $30, so the approximately 141,000 shares held by Rothschild Investment are worth approximately $4.2 million. In the first quarter of the year, Rothschild Investment’s open position in bitcoin using GBTC was $1.92 million.
Who is Rothschild who bought Grayscale’s bitcoin shares
It is important to note, however, that Rothschild Investment has nothing to do with famous Rothschild family of bankers.
Interestingly, this company’s investments in Grayscale Bitcoin Trust appear to have occurred when the price of bitcoin was low, or after an obvious drop, and that if initially, it was probably just a small trial, with a very small amount of money, now the amount invested is starting to be considerable, although perhaps not substantial yet.
Grayscale CEO Michael Sonnenshein himself recently revealed that the profile of the average GBTC investor is one that does not focus on short-term bitcoin price fluctuations, but rather invests for medium to long-term objectives.
In other words, it appears that Rothschild Investment has no intention of trading in this market for short-term speculation on the high volatility of the bitcoin price, but chose to make a small medium-term investment initially when the BTC price was around $10,000 and then to make another slightly larger investment when the price drops below $40,000.
The very fact that they indirectly bought bitcoins at a price likely below $10,000 and then didn’t sell them even when the price rose above $60,000 clearly means that they didn’t just buy them to resell them at a profit as quickly as possible.