Rothschild Investment Now Holds Over $1 Million in BTC through Grayscale Bitcoin Trust

  • Rothschild Investment Corporation bought 6,000 shares of Grayscale Bitcoin Trust between Oct. and Dec. 2020.
  • At current prices, the bank has over $1 million in Bitcoin alone.
  • Institutional interest in Bitcoin as an inflationary hedge appears to be growing.

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Rothschild Investment has joined the long list of institutions that hold at least $1 million in Bitcoin — particularly through the Grayscale Bitcoin Trust.

Rothschild Investment, a Chicago-based investment bank, has increased its exposure to Bitcoin by at least 24% since October 2020. In its recent filing with the SEC, the firm disclosed that its Bitcoin Loophole BTC investment has ballooned to $1 million. Rothschild has been investing in Bitcoin since at least 2017 — primarily through the Grayscale Bitcoin Trust (GBTC).

The Rothschild Investment Corporation reportedly now owns 30,454 shares of GBTC as of Dec. 31, 2020. That figure represents a massive leap over its disclosure of owning 24,500 shares in October. For reference, each GBTC share is trading at $31.50 at the time of publication.

Grayscale Bitcoin Demand Outstrips Mined Supply

On Jan. 18, 2021, alone, Grayscale reportedly purchased 16,240 BTC — worth around $607 million.

Given that each Bitcoin block takes roughly 10 minutes to mine, an estimated 900 BTC enters circulation each day. Even over two weeks, 12,600 BTC entering the market pales compared to Grayscale’s single-day purchase. This trend of institutions purchasing more Bitcoin than what is being mined every day means that demand has already started to outstrip supply.

Grayscale isn’t the only firm that is aggressively purchasing Bitcoin from the open market either. In December 2020, MicroStrategy announced that it had crossed over $1 billion in BTC purchases that year. The business intelligence company now holds at least 70,784 BTC, with an average acquisition price of approximately $16,035.

MicroStrategy has purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin. We now hold approximately 70,784 bitcoins.

Categories: Bitcoin

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