Israeli pension firm earns huge profits from a $100 million investment in Bitcoin.

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Altshuler Shaham, Israel’s biggest pension firm, has doubled its capital by spending $100 million in Grayscale Blockchain Trust shares (GBTC).

According to Israel’s Globes publication, Altshuler Shaham Investment House purchased GBTC stock at the end of 2020 when Bitcoin exchanged around $21,000.

Gilad Altshuler, the co-founder and co-CEO of Altshuler Shaham, said:

“The $100 million investment has become $200 million,  and of the $200 million we have already sold about a third.” He further stated: “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.”

When Bitcoin reached new highs in early February, the fund manager sold a return of around a third of the original investment. At the present time, the investment house holds an estimate of $150 million worth of Bitcoin, with Altshuler suggesting that it could add more investment, but that depends on the market. He said that they are a little overwhelmed by the pace at which Bitcoin is rising to present levels, with its global market cap hitting the $1 trillion mark.

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Altshuler Shaham is one of Israel’s largest investment firms, investing about $51.5 billion in long-term pension and retirement accounts by the end of January. Currently, the investment house is the only institution in Israel that has spent such large sums of money in Bitcoin.

This is not the first time that Altshuler Shaham has been betting on cryptocurrencies. The fund manager is believed to have invested in some of Israel’s initial coin offerings in 2017.

The Smartest Investors Buying Bitcoin

News about Altshuler Shaham’s interest in Bitcoins comes at a period when a growing array of organisations are welcoming the leading cryptocurrency. Bitcoin and its products are becoming increasingly popular all over the world. The digital asset has been a significant draw for major public corporations, some seeing it as a buffer against inflation and a revolutionary capital investment approach intended to increase long-term shareholder value.

Earlier this week, Meitu, a Chinese corporation that produces a picture editing software, purchased Bitcoin and Ether, becoming one of the newest companies to invest in crypto properties. The Hong Kong Exchange-listed company bought $17.9 million worth of Bitcoin and $22.1 million worth of Ether on March 5.

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The Chinese app developer leads the likes of MicroStrategy Inc, Square Inc, and Tesla’s electric vehicle company in the purchasing of Bitcoin. However, Meitu claims to be the first big company to buy Ether, a crypt that is funded by the Ethereum blockchain. Meitu said that its bet on Ether would support its general blockchain activities while investing in Bitcoin is part of its asset allocation plan.

 

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