Investment firm Guggenheim Partners, with over $200 billion assets under management, is considering investing in Bitcoin indirectly via Grayscale’s Bitcoin Trust product (GBTC). The firm made a filing to the U.S. Securities and Exchange Commission (SEC) on reserving the right for its $5.3 billion Macro Opportunities Fund to put 10% of its net asset value in Bitcoin. This signifies that the investment company can invest up to $500 million in cryptocurrency.
Guggenheim Seeks To Invest In Bitcoin
As per the filing with U.S. Securities and Exchange Commission, the firm plans to invest over $500 million in Bitcoin indirectly, via Grayscale’s Bitcoin Trust product (GBTC). The note read:
“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, a privately offered investment vehicle that invests in Bitcoin.”
GBTC allows investors to trade shares in trusts that hold large sums of Bitcoin. It also enables trading on the shares of stocks market. This signifies that investors don’t have to deal with holding the assets but only hold shares that represent investment in Bitcoin.
Guggenheim Partners invests in various assets on behalf of high-profile institutional customers. Some of them include pension funds, sovereign wealth funds and large companies. Guggenheim’s recent involvement in Bitcoin would further get them exposed to a newer type of asset class.
Cryptocurrencies to Act as a Medium of Exchange
According to the release, the investment firm views cryptocurrencies broadly as digital assets that will act as a medium of exchange.
However, the firm’s note to the SEC did not mention on the risks involved in investing in cryptocurrencies. The note higlighted:
“In addition to the general risks of investing in other investment vehicles, described further 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.”