Rothschild Investment Corporation increases stake in GBTC as institutional adoption grows

Published at: Jan. 25, 2021

Rothschild Investment Corporation, a leading Chicago-based financial institution founded in 1908, has invested heavily in Grayscale’s Bitcoin Trust, according to a Monday morning filing with the United States Securities and Exchange Commission, or SEC.

Rothschild reported owning 30,454 shares of GBTC as of Dec. 31, 2020, according to Form 13F-HR, also known as the institutional manager holdings report. In its October filing, the firm reportedly owned 24,500 shares.

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

According to its corporate website, Rothschild Investment Corp was founded in 1908 as Rothschild & Company. Its founders, Monroe Rothschild and brother-in-law Samuel Karger, started the firm as a full-service brokerage. However, it's not part of the Rothschild family dynasty, according to Bloomberg. 

GBTC represents publicly quoted shares of Grayscale’s increasingly popular Bitcoin Trust, which now has over $20 billion in assets under management. GBTC generated $217.1 million in average weekly inflows during the fourth quarter, a new record high.

01/22/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.Total AUM: $24.2 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/YHQJL8Ftru

— Grayscale (@Grayscale) January 22, 2021

GBTC currently trades at less than $34.00 per share.

Rothschild increased its exposure to Bitcoin (BTC) during a pivotal time in the cryptocurrency’s bull market. Bitcoin’s price nearly tripled in the fourth quarter before peaking near $42,000 in early January. Although price action has cooled off somewhat, BTC price is currently hovering around $34,000. 

The investment manager is one of several big-name institutional players to enter the cryptocurrency market in the past year. This trend is expected to continue as central banks and governments expand their monetary base to support the post-pandemic recovery. In this vein, Bitcoin is increasingly viewed as a monetary hedge against inflation. 

Digital assets will be top of mind at this week’s Davos Agenda. The summit, which is hosted by the World Economic Forum, features two sessions focused on “resetting digital currencies.” Although the discussions are likely to center around central bank digital currencies, or CBDCs, they magnify Bitcoin’s disruptive impact on traditional finance.

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