U.S. Global Investors, a Texas-based investment manager with $4.6 billion in assets under management as of Q1 2021, purchased Bitcoin exposure.
Texas-based investment manager U.S Global Investors which is said to be $4.6 billion in assets under management as of Q1 2021 purchased exposure to Bitcoin.
Based on the filing from the United States Securities and Exchange Commission on Monday, U.S Global Investors said more than $566,389 worth of shares of Grayscale Bitcoin Trust, or GBTC, to three of its eight mutual funds as of June 30. The filings are proof to the fact that the company invested $302,899 GBTC in its Gold and Precious Metals Fund, $222,532 in its World Precious Minerals Fund and $40,958 in its Global Resources Fund.
The Bitcoin (BTC) exposure act up to 0.19% of the net assets in the funds as the Gold and Precious Metals Fund single handedly had $158 million in assets under management. Nonetheless, it is an unexpected investment from a firm that has a commendable amount of exposure to gold, minerals, precious metals, petroleum and other natural resources. U.S Global Investors also stated GBTC as common equity.
“This is not a surprise nor does it indicate a shift in the way other gold equity managers view crypto or Bitcoin,” said gold bug Peter Schiff. Schiff stated that CEO of U.S Global Investors, Frank Holmes is the executive chair of crypto mining fir Hive Blockchain. A gold bug like Schiff, Holmes had forecasted that the price of Bitcoin and Ether (ETH) could reach $80,000 and $3,000. During 2021, even though Bitcoin record high price halted at $64,899 in April, the price of ETH went above the CEO’s prediction reaching an all-time high of $4,384 in May.
Nonetheless, hedging bets on inflation, responding to investor interest with other important investment firms have purchased GBTC. Morgan Stanley’s Insight Fund owns at least 928,000 shares of Grayscale’s Bitcoin Trust, and SEC Filings show Edge wealth management, JP Morgan Chase, Ark Invest and Rothschild Investment Corporation also have exposure to BTC through Grayscale.