Guggenheim Partners is preparing to test Bitcoin mutual funds

A report by the SEC on Friday indicated that the next Wall Street institution to introduce bitcoin may be also one of the largest: the financial services company Guggenheim partner of $ 275,000 million.

Using the Guggenheim application, the Macro Opportunities Fund can buy GBTC, a publicly traded Bitcoin investment vehicle owned by Grayscale, at an unspecified time in the future.

“”The Guggenheim Macro Opportunities Fund may indirectly seek exposure to Bitcoin investments by investing up to 10% of its Net Asset Value in the Grayscale Bitcoin Trust. (GBTC) “, it says in the presentation.

Guggenheim Partners is preparing to test Bitcoin mutual funds
Guggenheim Partners is preparing to test Bitcoin mutual funds

According to the independent rating company Morningstar The Guggenheim Macro Opportunities Fund currently has $ 5.3 billion under management and a four-star rating “based on the risk-adjusted returns of 270 non-traditional pension funds.”

Guggenheim describes the fund’s overall strategy for stocks with institutional credit ratings (ticker: GIOIX) as the product of the investment team’s “most convincing ideas”.. If the fund acquired 10% of GBTC stock, it would be worth $ 500 million.

The file also references a long list of potential investor risks related to cryptocurrencies., referred to as “digital assets intended to serve as a medium of exchange”. The risks include fHigh regulatory cryptocurrency exchange, GBTC’s historic “significant premium” for net asset value, and uncertainty about tax laws and regulations, among other.

This preparatory move in Guggenheim appears to be part of a series of cascading investments that indicate increased adoption of Bitcoin by major financial institutions.. In August, the business intelligence company Microstrategy bought almost 40,000 Bitcoin, which led to a parabolic course. Likewise, financial services company Square, Inc. bought $ 50 million worth of Bitcoin in October.

This growing snowball of institutional interest can quickly turn into an avalanche, as a prominent voice in crypto journalism has pointed out:

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