Guggenheim Funds Trust introduced an amendment to allow its $ 5 billion Macro Opportunity Fund to be exposed to Bitcoin.
Guggenheim Funds Trust applied with the United States Securities and Exchange Commission (SEC) to allow its $ 5 billion Macro Opportunity Fund to be exposed to Bitcoin by investing up to 10% of the value of the fund’s net assets at the Grayscale Bitcoin Trust (GBTC).
The firm reserves the right to have its $ 5 billion Macro Opportunity Fund, which aims to achieve a total return through fixed income and other debt and equity securities, to invest in the Grayscale Bitcoin Trust.
The trust’s shares are invested solely in Bitcoin and track the price of the digital asset minus fees and expenses.
“The Guggenheim Macro Opportunity Fund is interested in seeking investment exposure to Bitcoin indirectly by investing up to 10% of its net asset value in the Grayscale Bitcoin Trust, a private investment vehicle that cares about Bitcoin.
To the extent that the Fund invests in the GBTC, it will do so through the Subsidiary”, said the firm in the document that serves as an agreement with the SEC.
Investments in Bitcoin would place Guggenheim and his chief investment officer Scott Minerd with the likes of Paul Tudor Jones and Stan Druckenmiller, who have already talked about the investment of money in the digital asset.
The first cryptocurrency has seen a strong rise in 2020, approaching its all-time highs of December 2017, currently being above $ 19,300.
How is Guggenheim facing the implied risks?
The Guggenheim application, which describes cryptocurrencies as “digital assets designed to act as a medium of exchange,” also lists a wide a diverse amount of risks.
These risks include prices that “can be highly volatile,” regulatory changes, a crisis of confidence, and a lack of trust in the Bitcoin network. Also, it includes a change in user preference for competing cryptocurrencies and the habit of trading on “largely unregulated” exchanges that may be more exposed to fraud and failure than other regulated exchanges that set up for other asset classes.
Even so, Guggenheim seems to show an interesting attachment to Greyscale as a potential source of exposure to cryptocurrencies.
“Except for its investment in GBTC, the Fund will not invest, directly or indirectly, in cryptocurrencies,” the document reads.
The Macro Opportunity Fund is a vital part of Guggenheim Investments, the global asset management, and an investment advisory division of Guggenheim Partners founded by the famous Guggenheim family.
Guggenheim Family is a family well-known for being the owners of several museums of the same name around the globe and for having more than USD 233,000 million in total assets in fixed income, variable income, and alternative strategies.
The fact that a family with this reputation is investing in Bitcoin, and more in these amounts, could create a noticeable increase in prices to cause them to grow even higher in the next year.
By: Jenson Nuñez.
