Victor Ugochukwu · Dec 14, 2020 . 5min read
Guggenheim files to invest over $500M in Bitcoin via GBTC
Guggenheim has filed investment exposure to bitcoin indirectly via Grayscale's Bitcoin Trust product (GBTC) from its Macro Opportunities Fund.
By Komal Joshi · Nov 30, 2020 . 6min read
Guggenheim filed a motion with the U.S. SEC (Securities and Exchange Commission) to support its $500M Macro Opportunities Fund to obtain investment exposure to bitcoin. It intends to fund up to 10% of the fund’s net asset value in the GBTC (Grayscale Bitcoin Trust). It is a firm that funds across asset classes on behalf of pension funds, companies, and sovereign wealth funds. Guggenheim states that it might seek investment exposure to bitcoin indirectly via Grayscale’s Bitcoin Trust product (GBTC) from its Macro Opportunities Fund.
Guggenheim is the latest to show interest in Bitcoin.
According to the filing, a list of possible investor threats associated with cryptocurrencies is issued. The list involves a lack of cryptocurrency exchange regulation, GBTC’s traditional significant premium to net asset value, and scepticism about tax laws and regulations, among others. Guggenheim would be the most recent to display its excitement in bitcoin as a macro play.
For the uninformed, the Macro Opportunities Fund consists of more than $5 billion in assets under management. The Macro Opportunities Fund is a member of Guggenheim Investments, the global asset management, and investment advisory division of Guggenheim Partners, and has over $233 billion in total assets over equity, fixed income, and alternative strategies.
Grayscale exceeds $10 Billion in Assets.
Grayscale is one of the largest crypto asset-managers. It recently exceeded $10 billion in assets as bitcoin rose to highs, challenging levels in 2017. The hedge fund was founded in 2013 and has since expanded to become the largest private holder of Bitcoin in its BTC Trust. Grayscale controls 509,581 BTC as part of its Cryptocurrency Trust. Moreover, when an investor purchases a Trust administered by Grayscale over the counter, it usually is with a premium.
Bitcoin, one of the largest digital currency, has gained immense popularity owing to its rise in price since October. Guggenheim is the recent one to show interest in bitcoin. Recently, Jim Cramer, TV personality on CNBC’s Mad Money and long-time investor thinks it is not extremely late to invest in Bitcoin. Additionally, he believes that it is an excellent alternative to gold. Nevertheless, SoftBank CEO, Masayoshi Son, has chosen to stay away from the cryptocurrency owing to his experience.
Moreover, he admitted losing $50 million when he sold his Bitcoin (BTC) back in 2018. The reason behind selling bitcoin was distractions due to the coin’s volatility. The SoftBank CEO states that he still doesn’t get BTC dynamics.
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