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:
2016: The institutions are coming!
2017: The institutions are coming!
2018: The institutions are coming!
2019: The institutions are coming!
2020: The institutions are here!
2021: Dammit, the institutions bought all the #Bitcoin
— Jon Rice (@JonRiceCrypto) October 17, 2020