On November 27th, Guggenheim Partners joined the train of traditional financial institutions with exposure in the crypto field. The company filed an amendment with the US Securities and Exchange Commission seeking to invest over $500 million in Bitcoin. They will invest indirectly through Grayscale’s Bitcoin Trust Company (GBTC).
The Guggenheim investments may seek investment exposure to Bitcoin (BTC, +3.15%) indirectly through investing 5 million of its net asset value. To the extent the Fund invested in GBTC will be a wholly-owned subsidiary, categorized as a limited company protected by the laws of the Cayman Islands.
Guggenheim recognizes GTBC as a significant premium. Founded in 2013, Grayscale’s bitcoin trust is a popular traded financial product. It operates as an exchange-traded fund and monitors the price of bitcoin. It is a financial instrument that enables investors to trade shares in trusts holding large numbers of Bitcoin. It is the largest BTC public holder with 449,596 BTC.
Guggenheim Joins BTC Fever
Guggenheim is the newest multibillion-dollar hedge fund to show an interest in bitcoin. The investment company has over $200 billion in assets under management. Paul Tudor Jones’s $22 billion BVI Global Fund could invest “a low single-digit percentage” of its assets in bitcoin futures this summer.
He hopes the move will protect the assets from inflation. Recently, hedge fund manager Stanley Druckenmiller noted that the bitcoin bull run could outdo gold. A business analytic company, MicroStrategy, also bought 21,454 BTC as a hedge against fiat money inflation. Since then, several whales in the Bitcoin network have been progressing.
The Future looks Promising
The acceptance of bitcoin by several institutions has impacted its prices significantly. With the current trend, bitcoin has experienced a price surge in the past few days. Paypal announced the adoption of cryptocurrencies on its platform late last month, including BTC; the digital asset rose by 4.99% price just within 24 hours.
Experts are optimistic that the cryptocurrency will soon reach its foreseen price at 20K. Despite the sharp dive it encountered this week, it is recovering. Bitcoin price descended to $16,200, but as of writing, BTC is now at over $19,000.
The spearheading digital asset has gained over $5,000, 37% in less than a month, and around 500% from the lows reached early this year. While the coin is still at risk to the downside correction to $13,000, the future trends are positive amid strong fundamentals like the ultra-easy monetary schemes, the global central banks’, and possible economic crisis followed by high inflation rates.