Hedge Fund Guggenheim Planning $500 Million Bitcoin Investment

Guggenheim, a hedge fund with over $275 billion is planning to invest $500 million in Bitcoin investments. The fund filed a note with the Securities and Exchange Commission (SEC) on Friday and said that will reserve the right to put 10% of its funds in Bitcoin via Grayscale.

Multi-million-dollar investments in Bitcoin

Global investment firm Guggenheim Partners will be investing 10% of its net asset value for the $5.3 billion Macro Opportunities Fund using the Grayscale Bitcoin Trust. The firm made a filing with the SEC on Friday, informing the regulator of its decision.  The note said,

“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.”

Grayscale Bitcoin Trust lets investors trade shares in trusts holding big amounts of Bitcoin. It is the largest crypto hedge fund in the world and its investor’s trade shares on the stock market. This allows investors to get exposure to Bitcoin without holding the asset directly.

What is Guggenheim planning?

The Macro Opportunities Fund is one of the Partners’ funds of Guggenheim which handles more than $5.3 billion in investor cash. This focus on Bitcoin will mean that they expect the cryptocurrencies to be a safe bet. However, the fund also mentioned the risks involved in digital coins.

The note stated that the value of cryptocurrencies could be very volatile. It said that cryptocurrencies are new technological innovations and highly speculative assets. It said that regulatory actions or policies related to cryptocurrencies may adversely affect the value of the fund’s investments.

The New York-based firm is the newest company on Wall Street to show interest in Bitcoin investments. This includes institutional investors, tech companies, and even traditional finance companies. The hype around Bitcoin and its staggering returns alongside the value proposition has caught the attention of these investors.