Rothschild Investment Corporation, a leading Chicago-based financial institution founded in 1908, has invested heavily in Grayscale\u2019s Bitcoin Trust, according to a Monday morning filing with the United States Securities and Exchange Commission, or SEC.<\/p>\n
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.<\/p>\n
According to its corporate website, Rothschild Investment Corp was founded in 1908 as Rothschild & Company. Its founders, Monroe\u00a0Rothschild and brother-in-law Samuel Karger, started the firm as a full-service brokerage. However, it’s not part of the\u00a0Rothschild family dynasty, according\u00a0to Bloomberg.\u00a0<\/p>\n
GBTC represents publicly quoted shares of Grayscale\u2019s 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. <\/p>\n
GBTC currently trades at less than $34.00 per share. <\/p>\n
Rothschild increased its exposure to Bitcoin (BTC) during a pivotal time in the cryptocurrency\u2019s bull market. Bitcoin\u2019s 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.\u00a0<\/p>\n
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.\u00a0<\/p>\n
Digital assets will be top of mind at this week\u2019s Davos Agenda. The summit, which is hosted by the World Economic Forum, features two sessions focused on \u201cresetting digital currencies.\u201d Although the discussions are likely to center around central bank digital currencies, or CBDCs, they magnify Bitcoin\u2019s disruptive impact on traditional finance. <\/p>\n