The news has come at a time when institutional interest in Bitcoin is increasing across the globe. The latest firm to join the Bitcoin bandwagon is the Chinese tech firm Meitu. The Hong Kong-listed enterprise is investing $40 million in cryptos, specifically in Bitcoin (BTC) and Ethereum (ETH).
Globes publication, an Israel based media outlet, stated that Altshuler Shaham bought the GBTC shares in the final leg of 2020 when Bitcoin was being traded for about $21,000. Co-CEO, co-owner and founder Gilad Altshuler stated:
“The $100 million investment has become $200 million, and of the $200 million we have already sold about a third.”
He further stated that it is “a new investment for us. It took a few months until we got all the relevant approvals and all the opinions that approved our investment in the field.”
The Globes report pointed out that the Israeli investment firm currently possesses about $150 million worth cryptos. Notably, Altshuler intends to acquire more Bitcoins in the future. Regarding the timing of purchase, the firm said:
“It depends on the price. We were a little intimidated by the speed with which Bitcoin reached these prices, with its global market capitalization crossing the $1 trillion mark, and that worried us a bit.”
At the end of January, Altshuler Shaham, being one of the largest investment houses in Israel, was managing about $51.50 billion in retirement and pension funds. It is not the foremost time Altshuler Shaham is involved in cryptos. Back in 2017, the firm made investments in initial coin offerings.
The firm’s associate concern Altshuler Shaham Horizon is also involved in cryptocurrency investments. Last week, the firm appointed Ilan Stark as the new CEO. Stark had earlier administered the trading and capital markets unit of Israeli blockchain firm Orbs.
The firm invested $100 million in Bitcoin via the Grayscale Bitcoin Trust, a leader in providing exposure to cryptos. The trust currency manages about $31.40 billion worth assets. In recent times, the firm’s shares have been trading at a discount of 15% in relation to the total value of Bitcoin held. Notably, the trust has temporarily suspended the issue of GBTC shares on March 7.