Giant investment company Guggenheim Partners is the latest Wallet Street firm to invest in Bitcoin. Guggenheim, the firm having $270 billion under its management, will allocate more than $500 million in the world’s leading digital asset.
Filing with SEC
In its latest filing in the Securities and Exchange Commission (SEC), the giant asset manager will invest via its Macro Opportunities fund in the flagship cryptocurrency. According to Guggenheim Partners’ filing, the investment firm will allocate over $500 million in Grayscale Bitcoin Trust (GBTC).
“The 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,” it said in SEC’s filing.
The Macro Opportunities fund is known for its “team’s highest-conviction ideas in the current market environment through an unconstrained approach” and is currently holding $5 billion in assets under management.
Guggenheim, however, makes it clear that it will not allocate capital for crypto assets either directly or indirectly “except for its investment in GBTC.” If the Macro Opportunities fund invests 10% of its stake in Grayscale’s BTC product, it becomes equal to over $500 million. According to the filing:
“To the extent the Fund invests in GBTC, it will do so through a wholly-owned subsidiary, which is organized as a limited company under the laws of the Cayman Islands (the “Subsidiary”).”
Grayscale, is one of the largest crypto assets fund managers, which exceeds the $10 billion figure in assets under management. The rising volume of Grayscale is dedicated to rising Bitcoin’s price value due to heavy funding on the part of institutional investors. In January 2017, Grayscale’s BTC product was having a value of under $200k but now the figure is approaching $6 billion in assets under management.
Guggenheim is the latest name in institutional players who have joined the train of crypto space. Investment guru Paul Tudor Jones said earlier this year that Bitcoin would perform as a better investment hedge against disturbing policies of central banks. He also hinted at the coming of institutional clients towards the top digital assets that are happening now. Another prominent billionaire Stanley Druckenmiller revealed in early November that he invested in Bitcoin.
Before Guggenheim Partners’ entrance into the crypto industry, MicroStrategy was the institutional giant to invest more than $400 million in the world’s top digital currency.