Guggenheim Says Could Invest Up To $ 530 Million In Bitcoin Trust As Cryptocurrency Jumps To Record Highs | Currency News | Financial and business news

• Guggenheim Partners revealed in a regulatory document Friday that its Macro Opportunities Fund was entitled to invest up to 10% of its net asset value in Grayscale Bitcoin Trust.
• The trust invests exclusively in Bitcoin and a 10% bet from the Guggenheim fund would equate to around $ 530 million.
• The cryptocurrency jumped to an intraday high of $ 19,873.23 on Monday, eclipsing the record set in December 2017, before reducing gains.
• Watch live bitcoin trading here.

Guggenheim Partners is the latest Wall Street firm to show interest in Bitcoin, and a regulatory filing on Friday signals the company could make a massive investment in the rising cryptocurrency.

Guggenheim revealed in a Securities and Exchange Commission document released Friday that its Macro Opportunities Fund was entitled to invest up to 10% of its net asset value in Grayscale Bitcoin Trust. The trust invests exclusively in Bitcoin, allowing its shares to act as a proxy for the popular cryptocurrency.

The fund manages approximately $ 5.3 billion in assets, making a 10% investment worth approximately $ 530 million.

Guggenheim described cryptocurrencies as “digital assets designed as a medium of exchange”. The firm added that while it could gain exposure to Bitcoin through grayscale trust, it had no other plans to invest directly or indirectly in cryptocurrencies.

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Bitcoin hit a record high on Monday, surpassing the record of $ 19,511 set in December 2017. The token jumped to $ 19,873.23 before reducing some gains.

Guggenheim joins other Wall Street heavyweights who have expressed optimism about the volatile token. Mike Novogratz, the former hedge fund manager who has long pushed for widespread use of cryptocurrencies, praised PayPal’s October decision to adopt them, describing it as an “exciting day” for technology.

“All banks will now be in a rush to serve cryptocurrencies,” he said tweeted on October 21. “We crossed the Rubicon people”.

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Billionaire investor Paul Tudor Jones also backed Bitcoin last month, believing the asset “the best inflation trade.” With the Federal Reserve set to temporarily allow for inflation above 2%, Bitcoin’s decentralized nature protects its value from faster price growth, Jones said.

The Guggenheim filing suggests the company is optimistic about Bitcoin but still sees several risks for the coin’s run-up. A stake in Bitcoin could fall prey to its “highly volatile” nature, the company said in the document. He added that the cryptocurrency’s value “could drop precipitously” for reasons such as regulatory changes, a change in user preference for a competing token or a “crisis of confidence” in the Bitcoin network.

Bitcoin was trading at $ 19,232.35 at 12:25 PM ET, up about 166% year to date.

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