Guggenheim Partners Gets Ready to Have Exposure in Bitcoin November 29, 2020 November 29, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsNovember 29, 2020 by Kelly Cromley

Guggenheim Partners Gets Ready to Have Exposure in Bitcoin

One of the largest Wall Street financial institutions might enter crypto market by investing in Bitcoin as per a SEC filing made on Friday. Specifically, we are speaking about the $275 billion financial services provider Guggenheim Partners.

The filing paves way for the Macro Opportunities fund to buy GBTC, a Grayscale managed publicly-traded asset offering exposure to Bitcoin, any time in the future.

The filing reads as follows:

“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”).”
As per independent ratings company Morningstar, the Guggenheim Macro Opportunities fund presently manages $5.30 billion worth assets and carries a four-star rating “based on risk-adjusted returns out of 270 Nontraditional Bond funds.”

Guggenheim has pointed out that the total fund strategy for the institutional level shares (ticker: GIOIX) as an outcome of the investment management group’s “highest-conviction ideas.” In case the fund opts for 10% stake in GBTC, it would command a value over $500 million.

The filing also provides a big list of likely investor risks linked with cryptos, which it points as “digital assets designed to act as a medium of exchange.” The list of risks includes non-availability of cryptocurrency exchange governance, GBTC’s long-term premium to value of net assets and uncertainty associated with tax rules and other regulations.

The initial steps taken by Guggenheim seem to be one among a series of investments indicating rising approval of Bitcoin among several top financial organizations.

Back in August, business intelligence company Microstrategy bought roughly 40,000 Bitcoin, paving way for a parabolic rise in share price.

Similarly, financial services provider Square, Inc purchased $50 million in Bitcoin in October.

The exponential rise of institutional interest in Bitcoin may soon become an avalanche, as per a crypto advocate:

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.