Wall Street firm Guggenheim Partners, a global investment and advisory firm with more than $295 billion in assets under management wrote in a filing Friday that it might “seek investment exposure to bitcoin indirectly” via Grayscale’s Bitcoin Trust product (GBTC) through its Macro Opportunities Fund.
Guggenheim’s $5 billion Macro Opportunities Fund wants Bitcoin exposure.
On Friday they filed an SEC amendment allowing them to invest up to 10% of their fund in $GBTC.
A 10% investment would be worth $487M, and would be $200M+ larger than their next largest position. pic.twitter.com/U34xqkBOH1
— Kevin Rooke (@kerooke) November 28, 2020
“The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent the Fund invests in GBTC, it will do so through the Subsidiary”, the firm wrote in the filing.
“Cryptocurrencies (also referred to as “virtual currencies” and “digital currencies”) are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. The Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent the Fund invests in GBTC, it will do so through a wholly-owned subsidiary, which is organized as a limited company under the laws of the Cayman Islands (the “Subsidiary”). Except for its investment in GBTC, the Fund will not invest, directly or indirectly, in cryptocurrencies,” the firm added.
Given the fund has net assets of $5 billion, according to Fidelity, it means mean the fund can invest up to $500 million in GBTC.
Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products. Total AUM: $10.8 billion | Source: Grayscale
Grayscale Investments, which is owned by Digital Currency Group, the world’s largest digital currency asset manager, recently surpassed $10,8 billion in assets as bitcoin soared to highs rivaling levels in 2017.
Read more:
- Grayscale Investments Now Holds 2% Of All BTC And 2% Of All Ethereum, Suggested That The Coin Has A Bright Future Ahead
- Grayscale Investments Recorded Its Largest Ever Quarterly Inflows, Over $1.0 Billion In Q3 2020