By Hidayat Sultanli
On Nov 30, 2020
Another Wall Street Giant, Guggenheim Partners, is planning to invest some of its net worth in Bitcoin. The firm, which has $ 270 billion in assets under its management, has joined the institutions that are interested in Bitcoin.
Guggenheim Partners has filed an amendment to the U.S. Securities and Exchange Commission (SEC) on November 27th. The company considers allocating more than $ 500 million of its Macro Opportunities Fund in Bitcoin via the GBTC. Grayscale Bitcoin Trust (GBTC) is Grayscale Investments’ publicly-traded financial product – Bitcoin investment vehicle. The firm said it would reserve the right to put 10 percent of its net asset value into the leading cryptocurrency for its $5.3 billion Macro Opportunities Fund. According to the amendment filed with the SEC:
“The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust “GBTC,” a privately offered investment vehicle that invests in bitcoin. To the extent the Fund invests in GBTC, it will do so through the Subsidiary.”
The Macro Opportunities Fund (MOF) is one of the Guggenheim Partners‘ best-known funds. Fidelity Digital Assets and Morningstar have claimed that there are close to $ 5 billion in assets under its management. This means that if the fund makes a 10% investment, it will invest $ 500 million in Bitcoin. According to the current price of Bitcoin, the investment firm will buy more than 27,000 BTC.
Grayscale is one of the largest crypto asset management companies. It allows investors to securely own BTC while avoiding the hassle of purchasing and storing BTC directly. Instead of holding the asset, investors own stocks representing their Bitcoin investments. Currently, Grayscale’s Bitcoin Trust holds more than 500,000 Bitcoin, surpassing $8.3 billion in value.
Bitcoin has attracted huge attention from institutional investors this year. Earlier this year, Paul Tudor Jones, the leading name in the investment world, announced that he invested in Bitcoin, and earlier this month, billionaire Stanley Druckenmiller said he bought Bitcoin too. Also, in October, asset management giant Stone Ridge reported that it purchased 10,000 BTC. Companies such as Square and MicroStrategy also bought 4,700 and 38,250 BTC, respectively. So, this list has expanded as another Wall Street Giant is planning to invest in Bitcoin.
The leading cryptocurrency seems to have continued to rise again today. According to CoinMarketCap, at the time of writing, it is trading around $ 19,123, up 5.55% during the 24 hours.
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