Rothschild Ramps Up Bitcoin Purchase, Now Holds $1M in BTC

Cryptocurrencies have gained significant awareness from various quarters, and institutions appear ready to guzzle more of the leading cryptocurrency. The latest firm to grow its bitcoin portfolio is institutional investment manager Rothschild Investment Company.

Rothschild Commits to Bitcoin Full-Time

In a recent filing with the Securities and Exchange Commission (SEC), the Chicago-based financial institution confirmed that it had increased its Bitcoin exposure. The firm explained that it purchased 30,454 shares of the Grayscale Bitcoin Investment Trust, worth $975,000. This also marks another turn in its years-long relationship with leading asset manager Grayscale Investments. 

The purchase marks a significant increase in Rothschild’s Bitcoin portfolio, which a source notes contains 24,500 shares of the Investment Trust as of October.

Considering that the latest purchase was made before December 31, Rothschild should have made a sizable gain on its investment with Bitcoin’s significant rally to start the year. 

Rothschild’s foray into Bitcoin began in 2017, when the company first purchased shares of Grayscale’s Bitcoin fund. The company withdrew its interests shortly after, although it re-entered the market in 2019 as the industry was looking to bounce back from 2018’s crypto winter. With institutional investment growing and the market in a relatively healthy position, the Chicago-based company appears poised to make a long-term commitment to the leading cryptocurrency.

Grayscale’s Big Year

Rothschild’s commitment is yet another testament to Grayscale’s largesse, which has been growing sporadically over the past few months. The New York-based firm is unarguably a leading figure in crypto investments, managing over $20 billion in assets.

Earlier this month, Grayscale noted in a filing that it posted record inflows for investments in Bitcoin and Ether in the fourth quarter of 2020. 

As the filing showed, total investments into the company’s products hit $3.3 billion in the quarter, translating to a staggering $250.7 million in weekly inflows. The number marked almost a 300 percent increase from Q3 2020, when the firm managed just $1.3 billion in total commitments. 

As expected, the Bitcoin Investment Trust saw most of the company’s investments, with $217.1 million in average weekly inflows. The Ether Trust saw just $26.3 million in weekly investments, 

Grayscale added that 93 percent of its investments came from institutions – particularly asset managers. That number also saw a jump from Q3, when institutions made up 84 percent of total commitments.

All in all, investments in the New York firm’s products totaled $5.7 billion – over four times the total inflows between 2013 and 2019