Israeli pension giant Altshuler Shaham invested $ 100 million in Bitcoin through the Grayscale Bitcoin Trust (GBTC).
One of the leading pension companies in Israel had invested around $ 100 million in Bitcoin via the GBTC route in the second half of 2020. Altshuler Shaham took this step when the leading cryptocurrency was trading around the $ 21,000 mark.
Bitcoin’s current bull cycle began last year. The leading cryptocurrency surpassed its all-time high of 2017 and set new ones in the coming months. It ended up trading near the $ 30,000 mark last year.
According to reports in the local press, Altshuler Shaham remains one of Israel’s best-known investment houses with more than $ 50 billion in assets under management. The $ 100 million investment should have increased 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 get exposure to Bitcoin and a variety of other cryptocurrencies. Investors either buy cryptocurrencies directly or access them through funds like Grayscale’s GBTC.
Grayscale funds are one of the most popular ways for institutional investors to get access to Bitcoin and other cryptocurrencies. However, the launch of some exchange traded bitcoin funds (ETFs) in Canada and other exchange traded cryptocurrency 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 company manages net assets of $ 42.1 billion across its various crypto trusts and funds. The funds and trusts offer investors the opportunity to get exposure to Bitcoin and other digital currencies.
Yesterday, Grayscale stopped new investments in GBTC as the fund trades 15% below the price of Bitcoin. The company made this decision after recent battles caused by the introduction of alternative bitcoin trusts and Canadian bitcoin ETFs. This recent development also had an impact on the Grayscale Ethereum Trust, which is also experiencing negative growth.
Digital Currency Group, Grayscale’s parent company, announced it would buy up to $ 250 million worth of GBTC shares. Buying back shares is a tactical move by companies looking to increase the price of their shares by decreasing the number of shares issued and ultimately creating more demand.