Count Guggenheim Partners LLC among those institutional investors casting an eye on cryptocurrencies.
Guggenheim is reserving the right for its $5.3 billion Macro Opportunities Fund — which aims for total return via fixed income and other debt and equity securities — to invest in the Grayscale Bitcoin Trust. The trust’s shares are solely invested in Bitcoin, and track the digital asset’s price less fees and expenses.
“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,” the firmsaid in a filing Friday to the U.S. Securities and Exchange Commission.
Investments in Bitcoin would put Guggenheim and its Chief Investment Officer Scott Minerd in with the likes of Paul Tudor Jones and Stan Druckenmiller, who have already said they’ve put money into the digital asset. The largest cryptocurrency has had a strong run in 2020, nearing its December 2017 record highs above $19,000 before falling back. As of 7:30 a.m. Sunday in London it was in the mid-$17,000s.
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Guggenheim’s filing, which describes cryptocurrencies as “digital assets designed to act as a medium of exchange,” also lists a wide variety of risks. Those include prices that “can be highly volatile,” regulatory changes, a crisis of confidence in the Bitcoin network, a change in user preference to competing cryptocurrencies, and trading on “largely unregulated” exchanges that may be more exposed to fraud and failure than regulated, established bourses for other asset classes.
Guggenheim appears to be sticking narrowly to the Grayscale vehicle as a potential source of crypto exposure, though.
“Except for its investment in GBTC, the Fund will not invest, directly or indirectly, in cryptocurrencies,” the filing said.
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