Wall Street’s Guggenheim is now technically allowed to invest 10% of its Global Macro Strategy Fund — around $500 million — with Grayscale’s Bitcoin Trust (GBTC) after an SEC filing came into effect on Sunday.
The investment giant first signalled it was bullish on the cryptocurrency last year, shortly after data intelligence firm MicroStrategy went balls-deep in Bitcoin.
Guggenheim’s SEC filing said it intends to gain indirect exposure to Bitcoin’s price movements via Grayscale, but exactly when remains unclear.
The price of [B]itcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence in the [B]itcoin network, or a change in user preference to competing cryptocurrencies. The Fund’s exposure to cryptocurrency can result in substantial losses to the Fund.Guggenheim’s SEC document filed 27/11/2020
In December 2020, Guggenheim’s CIO Scott Minerd bombastically told Bloomberg he believed Bitcoin’s price could reach $400,000.
However, Minerd sang a completely different tune after BTC set a new record high, tweeting that BTC could fall as low as $20,000 in the “near-term” in January.
Some pundits have already attributed major outflows from cryptocurrency exchange Coinbase to Guggenheim, however there’s currently no concrete proof.
Interestingly, if Guggenheim spent $500 million on Bitcoin (instead of taking the wuss’ way out with GBTC stock), it would immediately control BTC’s 10th largest treasury — just behind Galaxy Digital Holdings.