Israeli pension company invests $100M in Bitcoin via GBTC
Israeli pension giant Altshuler Shaham invested $100 million in Bitcoin via the Grayscale Bitcoin Trust (GBTC)
One of the leading pension companies in Israel had invested roughly $100 million in Bitcoin via the GBTC route in the second half of 2020. Altshuler Shaham made this move when the leading cryptocurrency was trading around the $21,000 mark.
Bitcoin’s current bull cycle began last year, with the leading cryptocurrency surpassing its 2017 all-time high and setting new ones in the coming months. It ended last year trading close to the $30,000 mark.
According to reports in the local press, Altshuler Shaham remains one of Israel’s most prominent investment houses, with more than $50 billion in assets under management. The $100 million investment should have grown by over 100% as Bitcoin is currently trading at $55,000 at press time.
The news came at a time when institutional investors are finding ways to gain exposure to Bitcoin and a host of other cryptocurrencies. Investors are either buying cryptocurrencies directly or accessing them via funds like Grayscale’s GBTC.
Grayscale’s funds are one of the most popular ways institutional investors gain access to Bitcoin and other cryptocurrencies. However, the launch of some Bitcoin exchange-traded funds (ETFs) in Canada and other cryptocurrency exchange-traded products (ETPs) gives institutional investors more options.
The Grayscale Bitcoin Trust was launched in 2013 and is currently the world’s largest Bitcoin fund. According to the latest figures, the firm has $42.1 billion in net assets under management across its various crypto trusts and funds. The funds and trusts offer investors the opportunity to gain exposure to Bitcoin and other digital currencies.
Yesterday, Grayscale halted new investments in GBTC as the fund trades at 15% below Bitcoin’s price. The firm made this decision following its recent struggles caused by the launch of alternative Bitcoin trusts and Canadian Bitcoin ETFs. This latest development also affected the Grayscale Ethereum Trust, which is also recording negative growth.
Digital Currency Group, the parent company of Grayscale, announced it would buy up to $250 million in GBTC shares. Repurchasing shares is a tactical move by companies looking to increase the price of their shares by decreasing the number of shares outstanding, ultimately creating more demand.
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Hassan Maishera, @KhareemSudlow