Israeli Asset Manager Doubled Bitcoin Investment in GBTC
CoinEdition
Published Mar 11, 2021 08:33AM ET
Updated Mar 11, 2021 09:00AM ET
Israeli Asset Manager Doubled Bitcoin Investment in GBTC
- Altshuler Shaham Investment House invested $100 million in the Grayscale Bitcoin Trust.
- The new investment doubled the Israeli asset manager’s Bitcoin stake.
- The news follows Chinese tech company Meitu’s $40 million crypto investment.
Israeli firm, Altshuler Shaham Investment House, invested $100 million in Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund. However, this is not the asset firm’s first Bitcoin purchase.
The investment house made its first purchase late last year. In fact, the recent move doubled Altshuler Shaham’s Bitcoin stake. Although Altshuler Shaham sold one-third of its holding, the remainder is still worth more than the purchase price.
Also, this is the first time an Israeli institution has acquired a holding in Bitcoin of this magnitude for customers. Altshuler Shaham, one of Israel’s largest investment bodies, managed NIS 171 billion in assets at the end of January.
The fund’s market value, which it trades over the counter, is currently around $34 billion. At the same time, the fund shares have risen by about 60% since the beginning of 2021. In fact, the shares have completed a jump of 495% in the last 12 months.
The purchase of GBTC shares, which provides indirect exposure to Bitcoin, was made by Altshuler Shaham when the price of Bitcoin was around $21,000. About two months later, in early February, the value of Bitcoin crossed the $40,000 mark and continued to soar. Thus the investment house decided to sell about a third of its holding in GBTC at a significant profit.
Notably, there has been increasing institutional interest in Bitcoin internationally. For example, the Chinese tech company Meitu invested $40 million into Ethereum and Bitcoin. This makes Meitu the first Hong Kong-listed company to invest in crypto.
This article first published on coinquora.com
Continue reading on CoinQuora
Get The News You Want
Written By: CoinEdition
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.