Always more in Bitcoin – The SEC announced Friday that a new institutional player is about to enter the bitcoin race. This is Guggenheim Partners, an investment firm worth $ 275 billion.
A major investor enters the game
Guggenheim Partners would therefore plan to allocate 10% of its fund Macro Opportunities in the Grayscale Bitcoin Trust (GBTC). Concretely, this is similar to an investment of $ 500 million aiming to expose oneself to Bitcoin, without having to own it directly.
As a reminder, this asset is offered on NASDAQ to allow individuals and institutions to invest in bitcoin, directly through the American public stock exchange. It’s the Grayscale group who then manages the purchase and conservation bitcoins on behalf of its clients, within a regulated crypto-fund by the American financial policeman.
Bitcoin bullish, a real opportunity?
By investing in Bitcoin, Guggenheim Partners and its Chief Investment Officer, Scott Minerd, would join personalities, such as Jack Dorsey (Twitter) or Stan Druckermiller, who have already said they have invested money in cryptocurrencies. BTC is today the largest virtual currency in terms of capitalization.
This currency has experienced a strong increase in 2020, approaching its December 2017 record of over $ 19,000 before suffering a fallout. Nevertheless, at 7:30 a.m. on Sunday, bitcoin was in the range of 17 000 dollars. We can now assume that Guggenheim Partners wants to benefit from this new craze for cryptocurrencies.
A measured risk
Guggenheim Partners describes cryptocurrencies as “Digital assets designed to serve as means of exchange”.
However, the giant also takes into account the risks and specifies:
“In addition to the general risks associated with investing in other investment vehicles, the value of the fund’s indirect investments in bitcoin is subject to fluctuations in the cryptocurrency, which can be very volatile. “
Subsequently, the report also emphasizes the risk of “fraud” which can be linked to bitcoin. It is for this reason that the fund has chosen toinvest in GBTC, and not directly in the cryptocurrency market, which is not regulated.
If Guggenheim Partners executes its investment plan, $ 500 million will be allocated to the queen cryptocurrency, a record. Despite everything, said bet will remain relatively indirect.