$275bn+ Hedge Fund Guggenheim Considers $500 million Bitcoin Investment

In the letter

  • Guggenheim Partners filed a notice to the SEC on Friday stating that it would reserve the right to invest 10% – up to $ 500 million – of its Macro Opportunities Fund in Bitcoin through the Grayscale Bitcoin Trust.
  • It’s the newest traditional investment firm to keep an eye on the currency.
  • However, the company has taken note of the associated risks.

Global investment firm Guggenheim partner is considering investing hundreds of millions of dollars in a Bitcoin Trust.

The company on Friday made a submission to the US securities and exchange The Commission states that it would reserve the right to invest 10% of its net asset value in the fund for its $ 5.3 billion Macro Opportunities Fund Cryptocurrency about the Grayscale Bitcoin Trust.

This means that Guggenheim could invest up to $ 500 million in the cryptocurrency.

“The Guggenheim Macro Opportunities Fund may indirectly seek exposure to Bitcoin by investing up to 10% of its net asset value in Grayscale Bitcoin Trust (” GBTC “), a privately offered investment vehicle that invests in Bitcoin,” the press release said.

GBTC enables investors to trade shares in trusts that hold large pools of bitcoin. As the world’s largest crypto hedge fund, investors can trade these stocks on the stock exchange. That way, investors don’t really have to worry about holding the asset – they’re just holding stocks that are represented Investing in Bitcoin.

Guggenheim’s Macro Opportunities Fund is one of Guggenheim Partners’ funds and manages $ 5.3 billion in investor cash.

The company’s potential future investment means Bitcoin could be a safe choice for its customers.

However, the notification to the SEC mentioned the risks associated with investing in cryptocurrencies.

“In addition to the general risks of investing in other investment vehicles described below, the value of the Fund’s indirect investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which can be highly volatile,” added the note.

“Cryptocurrency is a new technological innovation with a limited history. It is a highly speculative asset and future regulatory actions or guidelines may materially adversely affect the value of the Fund’s indirect investment in cryptocurrency and the ability to convert or use a cryptocurrency for payments. “

The New York-based company is the youngest Wall Street institution to show interest in Bitcoin. Traditional finance big wigs, Tech company and institutional investors have all shown interest in investing in cryptocurrency this year.

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