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Guggenheim Partners’ New Fund May Seek Exposure to Bitcoin, an SEC Filing Showed

Summary:
Guggenheim Partners may invest in Bitcoin and other cryptocurrency assets through its latest fund called Guggenheim Active Allocation Fund. A recent filing with the Securities and Exchange Commission revealed the giant’s plans to receive the exposure through cash-settled derivatives instruments. CryptoPotato reported last year Guggenheim’s filing in which the behemoth sought SEC approval to allocate up to 0 million in bitcoin through its Macro Opportunities Fund. The large organization has further dabbled with the primary cryptocurrency since then, and the latest development on this front came on Tuesday, according to a new filing with the SEC. The document reads that the Wall Street behemoth had filed for a new establishment called Guggenheim Active Allocation Fund. It

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Guggenheim Partners may invest in Bitcoin and other cryptocurrency assets through its latest fund called Guggenheim Active Allocation Fund. A recent filing with the Securities and Exchange Commission revealed the giant’s plans to receive the exposure through cash-settled derivatives instruments.

  • CryptoPotato reported last year Guggenheim’s filing in which the behemoth sought SEC approval to allocate up to $500 million in bitcoin through its Macro Opportunities Fund.
  • The large organization has further dabbled with the primary cryptocurrency since then, and the latest development on this front came on Tuesday, according to a new filing with the SEC.
  • The document reads that the Wall Street behemoth had filed for a new establishment called Guggenheim Active Allocation Fund. It will operate as a diversified, closed-end management investment fund that “may seek investment exposure to cryptocurrency (notably, Bitcoin).”
  • Guggenheim aims for cash-settled derivatives instruments, including exchange-traded futures. Such products are already available in the US through regulated exchanges on the Chicago Mercantile Exchange (CME) and CBOE Global Markets.
  • Nevertheless, Guggenheim’s filing outlined the potential risks of allocating funds in crypto assets. Those include the lack of clear regulations, the somewhat controversial public perception, cyber threats, and the “possible cessation or reversal in the adoption and use of cryptocurrency and other digital assets.”
  • “Cryptocurrency is a new technological innovation with a limited history; it is a highly speculative asset, and future regulatory actions or policies may limit, perhaps to a materially adverse extent, the value of the Fund’s indirect investment in cryptocurrency.” – further reads the document.

  • Previously, Guggenheim’s CIO, Scott Minerd, displayed a highly inconsistent opinion on the primary cryptocurrency. He went from predicting a price tag of up to $600,000 per coin to forecasting a damaging future, in which BTC retraces below $20,000.

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