Scott Minerd. Source: CNBC
With Bitcoin clocking $21,000 for the first time in history, one Wall Street investor is saying the top-ranked crypto by market capitalization should be worth a lot more.
In a phone interview with Bloomberg TV on Wednesday (Dec. 15), Scott Minerd, chief investment officer at Guggenheim, said Bitcoin should be worth 20x its current market price.
“Our fundamental work shows that bitcoin should be worth about $400k. We are going to, even if we have the ability to do so today, we are going to monitor the market and see how trading goes.” – He said.
Minerd’s comments are coming amid mounting enthusiasm as bitcoin crossed the $21,000 price milestone for the first time in its history. As part of the interview, the Guggenheim executive revealed that the company allocated funds to BTC back when the price was at $10,000.
According to a CryptoPotato report in late November, Guggenheim filed an application with the SEC to purchase $500 million worth of BTC via its Macro Opportunities Fund. Given the current bitcoin price run, the firm is now sitting on over 100% in (supposedly) unrealized gains from its BTC play.
Further speaking on the 20x price call for Bitcoin, Minerd said it is attainable, taking into consideration relative valuation and scarcity.
“Bitcoin has a lot of the attribute to gold and at the same time has an unusual value in terms of transaction,” added Minerd.
Indeed, the long-talked-about institutional herd for Bitcoin appears to be on the agenda, with many established financial institutions adopting BTC. A Coinshares report from December 13 showed that institutional investors pumped $429 Million into bitcoin in one week.
The U.S. insurance firm MassMutual also bought $100 million in BTC in December. According to JPMorgan, insurance companies and pension funds allocating 1% of their assets to Bitcoin could see about $600 billion flowing into BTC.
Also, CryptoPotato reported earlier today that Ruffer Investment, UK-asset manager, bought a large chunk of the cryptocurrency. Furthermore, One River Digital Asset Management, a hedge fund headed by Eric Peters, also announced a purchase of $600 million worth of BTC and ETH. With the backing of Alan Howard, billionaire and co-founder of Brevan Howard Asset Manager, the hedge fund’s crypto holdings are expected to cross $1B in early 2021.
Featured image courtesy of CNBC