US-based financial services giant Guggenheim Partners has filed with the SEC, seeking approval to invest up to $500 million in Bitcoin through Grayscale.
Guggenheim Partners is among the largest investment and advisory financial services companies. The Wall Street giant filed a document with the US Securities Exchange Commission (SEC) to enable one of its funds, dubbed the Macro Opportunities Fund, to allocate millions of dollars in bitcoin.
According to the filing, the Fund plans to spend 10% of its net assets on bitcoin through the leading cryptocurrency manager – Grayscale.
“The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), reads the SEC filing.
Fidelity and Morningstar estimate that the Fund in question has about $5 billion in assets under management. Should the Fund indeed allocate 10% of this amount into BTC, it would mean a purchase worth $500 million.
With Bitcoin’s price hovering around $18,000 as of writing these lines, this substantial purchase would amount to about 27,650 bitcoins.
The SEC filing describes cryptocurrencies as “digital assets designated to act as a medium of exchange.” The document also listed several risks associated with cryptocurrency investments.
Those include lack of digital asset exchange regulation, GBTC’s historical “significant premium,” and uncertainty around taxation, regulations, and more.
2020 has turned out to be the year with the most substantial institutional BTC purchases. If Guggenheim proceeds and buys bitcoin, the Wall Street giant will join the likes of MicroStrategy and Jack Dorsey’s Square.
Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn