Wall Street giant with $ 295 billion in assets to invest in Bitcoin
The Guggenheim Funds Trust will invest over $ 500 million from the Macro Opportunities Fund to the Grayscale Bitcoin Trust (GBTC). Guggenheim Partners will be the largest company to acquire Bitcoin with more than $ 295 billion in assets it manages.
According to a document filed in the US Securities and the Stock Exchange Another Wall Street giant, the Commission (SEC) is planning to invest in Bitcoin. The Guggenheim Funds Trust made an amendment to the SEC on Friday that allowed the $ 5 billion Macro Opportunities Fund to be exposed to Bitcoin.
In particular, the Fund plans to invest 10% of its Net asset value in Grayscale Bitcoin Trust (GBTC). The document filed with the SEC states the following:
The Guggenheim Macro Opportunities Fund can indirectly seek investment risk for Bitcoin by investing up to 10% of the net asset value in the Grayscale Bitcoin Trust, a specially offered investment vehicle that invests in Bitcoin. To the extent that the Fund invests in GBTC, it will do so through the Subsidiary.
The Guggenheim Macro Opportunities Fund currently has $ 5.3 billion in assets under management, according to independent rating firm Morningstar, which means the Fund can invest up to $ 530 million in GBTC. Overall, the Guggenheim’s market entry will be a new record. Guggenheim Partners is a global investment and consulting firm with more than $ 295 billion in assets it manages and is the largest company to date to publicly disclose a Bitcoin investment.
Bitcoin investment will also be a record for the Guggenheim Macro Opportunities Fund. The 10% investment in Twitter will be more than $ 200 million larger than the next largest position of the Macro Opportunities Fund. Explained as Kevin Rooke:
Thanks to its investment in Grayscale Bitcoin Trust, the Guggenheim will not hold Bitcoin directly, as Gray scale Investments will take on this role. However, the Guggenheim will be exposed to the usual investment risks associated with Cryptocurrencies.
Applying to the SEC only includes a long list of these risks. Among other things, the Company points to the lack of regulation, uncertainty regarding Tax laws and regulations, and GBTC’s historically “significant profit margin”. Regarding the latter, the document states:
GBTC shares have been traded in the past and can continue to be traded with a significant premium or discount in net asset value. If GBTC stops trading its NAV at a premium, the value of the Fund’s investment in GBTC may decrease even if the value of GBTC’s underlying assets in Bitcoin does not decrease.
Avalanches of institutional Bitcoin investors continue
After Micro Strategy CEO Michael Saylor announced in August that Bitcoin was adapted as a “primary reserve asset” for his company, institutional investors publicized the renewal of their interest in Bitcoin. Jack Dorsey Square and PayPal and investor legends like Paul Tudor Jones, Stanley Druckenmiller and Bill Pulte, But to name a few, more and more acknowledge the potential of Bitcoin in times of broad monetary policy.