The investment house Altshuler Shaham of Israel has doubled its money after having invested $ 100 million in Grayscale’s Bitcoin Trust at the end of last year. It is the only known Israeli institution that has invested this magnitude of funds in Bitcoin so far.
The news follows growing institutional interest in Bitcoin internationally, with reports on March 7 that Chinese tech company Meitu had become the first Hong Kong-listed company to invest $ 40 million in cryptocurrencies, split between Ethereum and Bitcoin.
The publication Globes of Israel reported that Altshuler Shaham acquired the GBTC shares in late 2020, when Bitcoin was trading around $ 21,000. The co-CEO, founder and co-owner Gilad Altshuler told the publication:
“The $ 100 million investment has turned into $ 200 million, and of the $ 200 million we have already sold about a third.”
Added: “This 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 indicated that the investment house currently has around USD 150 million in cryptocurrencies, and you can add more according to Altshuler:
“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 trillion dollar mark, and that worried us a bit.
Altshuler Shaham is one of Israel’s largest investment houses, managing around $ 51.5 billion in long-term savings for retirement and pension funds at the end of January. It is not the first time that Altshuler Shaham has dabbled in cryptocurrencies and the firm reportedly took positions in initial local coin offerings in 2017.
Your subsidiary, Altshuler Shaham Horizon, is more actively involved in cryptocurrency investments and last week appointed Ilan Stark, who previously managed the trading and capital markets division of the Israeli blockchain company Orbs, as your new CEO.
The $ 100 million was invested in BTC through Grayscale’s Bitcoin Trust, which currently has around $ 31.4 billion in assets under management. Recently, the shares have been traded at a 15% discount to the underlying value of the Bitcoins you own.
By March 7, GBTC’s private placement offerings were stopped, however, this is something that happens periodically.