With crypto values rising exponentially, traditional investors are not just buying crypto but also angling for stakes in crypto companies. This is quite evident in the move by a U.K-based investment trust, under the care of J. Rothschild Capital Management Limited, to buy a stake in Kraken.
The investment was announced in a webinar that was hosted by Numis Securities back in March. However, it was not until April 12th that it became widely available to the public. Experts at Numis stated that the stake was acquired at fair market value.
While the deal’s existence has been made public, it is not yet clear how much money was involved or the size of the stake. However, it could be significant given that Kraken is valued at about $10 billion. Its estimated valuation became public when it announced that it was seeking additional capital.
The trust’s decision to buy a stake in a crypto exchange is significant. That’s because it is associated with the Rothschild family, one of the most important banking families in history. It was chaired by Jacob Rothschild up until he stepped down in 2019.
Besides the investment in Kraken, the Rothschild managed trust has been quite active in the crypto space. Late last year, it took part in a $142 million funding round for Paxos. It also has investments in crypto startups Brex and Nerdwallet. When such players get aggressive in crypto startups, it is an indicator that they expect the market to keep expanding.