Guggenheim Partners Prepare to Dip Fund Toes Into Bitcoin

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An SEC filing on Friday indicates that the next Wall Street institution to take a public stance on Bitcoin could also be among the largest to date: $ 275 billion financial services firm Guggenheim Partners.

The Guggenheim deposit allows the Macro Opportunities fund to purchase GBTC, a publicly traded Bitcoin investment vehicle from Grayscale, at an undetermined time in the future.

“The Guggenheim Macro Opportunities Fund may indirectly seek investment exposure to bitcoin by investing up to 10% of its net asset value in Grayscale Bitcoin Trust (‘GBTC’),” the document states.

According to independent rating firm Morningstar, the Guggenheim Macro Opportunities fund currently has $ 5.3 billion in assets under management and enjoys a four-star rating “based on risk-adjusted returns on 270 non-traditional bond funds” .

Guggenheim describes the fund’s overall strategy for institutional-grade equities (ticker: GIOIX) as a product of the investment team’s “strongest ideas”. If the fund were to take the full 10% stake in GBTC, it would be worth north of $ 500 million.

The deposit also notes a long list of potential risks to investors associated with cryptocurrencies, which it calls “digital assets designed to serve as a medium of exchange.” Risks include the lack of regulation of cryptocurrency exchanges, GBTC’s historic “significant premium” over NAV, and uncertainty over tax laws and regulations, among others.

This Guggenheim preparatory initiative appears to be part of a series of cascading investments indicating increased acceptance of Bitcoin among major financial institutions. In August, business intelligence firm Microstrategy bought nearly 40,000 Bitcoins, causing the share price to go parabolic. Likewise, financial services firm Square, Inc bought $ 50 million worth of Bitcoin in October.

This rolling snowball of institutional interest can quickly turn into an avalanche, as a prominent voice in crypto journalism noted:



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