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The investing firm is already well-versed in gold, minerals, precious metals, petroleum, and other natural resources.
U.S. Global Investors, a Texas-based investment firm with $4.6 billion in assets under management as of the first quarter of 2021, has purchased Bitcoin exposure.
According to a Monday filing from the United States Securities and Exchange Commission, U.S. Global Investors added 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 show 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.
Given that the Gold and Precious Metals Fund alone has around $158 million in assets under management, the Bitcoin (BTC) exposure represents up to 0.19 percent of the nett assets in the funds. It is, however, an unexpected investment from a company with major exposure to gold, minerals, precious metals, petroleum, and other natural resources. GBTC is also recognised as common equity by US Global Investors.
“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 further noted that the CEO of U.S. Global Investors, Frank Holmes, is also the executive chair of crypto mining firm Hive Blockchain.
Like Schiff, Holmes, a gold bug, recently forecast that Bitcoin and Ether (ETH) prices would hit $80,000 and $3,000, respectively, in 2021. Though Bitcoin’s all-time high price remained at $64,899 in April, the price of ETH rose far over the CEO’s forecast, reaching an all-time high of $4,384 in May.
Other big financial firms have purchased GBTC for a variety of reasons, including inflation hedging and responding to investor interest. Morgan Stanley’s Insight Fund has around 928,000 shares of Grayscale’s Bitcoin Trust, and according to SEC filings, Edge Wealth Management, JPMorgan Chase, Ark Invest, and Rothschild Investment Corporation also have exposure to BTC via Grayscale.