Global investment firm Guggenheim Investments has filed a new fund with the US Securities and Exchange that may seek exposure to Bitcoin (BTC).
According to a presentation on Tuesday The new Guggenheim Active Allocation Fund will be a diversified, closed-management investment fund that can seek exposure to cryptocurrencies such as Bitcoin through cash-settled derivative instrumentsThese instruments include exchange traded futures, investment vehicles that offer exposure to BTC, as well as other cryptocurrencies through direct investments or indirect exposure, such as.
The company stated that the fund’s exposure to cryptocurrencies could result in significant losses for the fund., citing a number of risks associated with the industry:
â ???? Cryptocurrencies are a new technological innovation with a limited history; it is a highly speculative asset and future regulatory actions or guidelines may limit the value of the Fund’s indirect investments in cryptocurrencies and the ability, potentially to a materially adverse extent, to convert or use a cryptocurrency for payments. “
According to the document, the Guggenheim Chief Investment Officer, Scott Minerd will be responsible for the day-to-day management of the fund’s portfolio along with Assistant CIO Anne Bookwalter Walsh, Managing Director Steve Brown and Director Adam Bloch.
Last year Guggenheim filed another filing with the SEC stating that its Guggenheim Macro Opportunity Fund can indirectly seek investment exposure to Bitcoin by investing up to 10% of its net asset value in the Grayscale Bitcoin Trust.
Minerd is known for his somewhat contradicting stance on cryptocurrencies and Bitcoin. how the executive referred to the crypto market as “Tulipmania” after Bitcoin fell to nearly $ 30,000 on May 19. Although Minerd compares the crypto industry to a financial bubble, she remains optimistic about Bitcoin over the long term. Predictions earlier this year that BTC could potentially reach $ 600,000.