The US investment giant, with $ 295 billion in assets, intends to buy Bitcoin

The powerhouse of global investment, Guggenheim Partners is preparing to invest approximately $ 500 million in the flagship crypto asset, Bitcoin.

According to its recent filing with the U.S. Securities and Exchange Commission (SEC), the Wall Street giant has approximately $ 295 billion in assets under management and is seeking permission for one of its funds to take a substantial stake in Grayscale Bitcoin. Trust (GBTC).

“The Guggenheim Macro Opportunities Fund may indirectly seek exposure to Bitcoin by investing up to 10% of its net asset value in the Grayscale Bitcoin Trust. To the extent the Fund invests in GBTC, it will do so through the Subsidiary. Except for its investment in GBTC, the Fund will not invest, directly or indirectly, in cryptocurrencies “, the report said.

What you should know

Investment giant, Guggenheim Partners, providing services such as investment banking, broker-dealer services in the capital markets and wealth management, has more than $ 295 billion under its wealth management. The elite investment bank is known primarily for its solid returns from investments in entertainment and media companies

The investment firm, however, talked about the risks associated with investing such assets, as it took into account the very high volatility it often exhibits relative to other financial instruments, meaning that such attributes could result in huge losses for the ‘company.

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“The price of Bitcoin could fall precipitously (even to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence in the Bitcoin network, or a change in user preferences over competing cryptocurrencies. Fund exposure to cryptocurrency may result in substantial losses for the Fund. “

Bottom line: With a blurry global outlook gradually becoming a daily norm, institutional funds around the world have come together in droves to have a stake in cryptocurrencies, particularly Bitcoin which all outperformed other financial assets in 2020.

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