Posted 3 months ago | by @devadmin
According to its new SEC filing, financial services company Rothschild Investment Corporation now holds 30,454 shares of Grayscale Bitcoin Trust (GBTC) that allows institutional investors to get exposure to the world’s largest cryptocurrency by market cap without directly having to use a crypto wallet or exchange.
BTC institutional watch:
In a filing this morning with the SEC, Rothschild Investment Corporation, founded in 1908, reported owning 30,454 shares of GBTC.
In a previous filing in October, the firm owned 24,500 shares.
Link to filing:https://t.co/AC3rvwgnwr
— MacroScope (@MacroScope17) January 25, 2021
This represents a 24 percent increase from October when Bitcoin was trading at roughly $20,000.
Rothschild Investment Corporation was founded by Monroe Rothschild in 1908 and has been around for several generations.
The Chicago-based investment management firm first disclosed its exposure to Bitcoin back in mid-2017. It started off with a relatively modest investment of 539 GBTC shares that were worth only $200,000. It is important to note that Rothschild Investment Corporation is not related to the famous family with the same surname. It’s also noteworthy to mention that GBTC’s entity Grayscale holds physical Bitcoin. Although, while GBTC is a trust that only holds Bitcoin, the GBTC stock price does not match the underlying Bitcoin price. Depending on investor sentiment, its shares can trade at a premium to its assets, or at a discount to its total Bitcoin holdings.
The GBTC premium can be a percentage above the spot price of Bitcoin that the Grayscale Bitcoin Investment Trust (GBTC) trades at. The GBTC premium can be used as a gauge of sentiment in the market, helping to identify tops/bottoms in market cycles. However, lately, that premium has been rapidly decreasing.
Bloomberg reported the $22 billion Grayscale Bitcoin Trust (ticker GBTC) dropped over 15% this week, outpacing Bitcoin’s weekly losses of 11%. As a result, GBTC’s premium to its underlying holdings — which swelled to 40% in December as the cryptocurrency surged — has dropped to just 2.8%, the lowest since March 2017, according to data compiled by Bloomberg
Nonetheless, GBTC is a way for institutional investors to get exposure to Bitcoin for their portfolios, at least until a Bitcoin ETF is approved backed by physical Bitcoin. GBTC is currently trading at [FIAT: $33.58] DOWN -2.50 in the last 24 hours according to Yahoo Finance.
Bitcoin is currently trading at [FIAT: $33,631.88] UP +7.5% in the last 24 hours according to Coingecko at the time of this report.