Guggenheim has registered a new fund with the U.S. Securities and Exchange Commission (SEC) that could have publicity to cryptocurrencies, notably bitcoin. The filing arrived as the asset management firm’s chief financial investment officer continuously produced bearish bitcoin predictions, contacting cryptocurrency Tulipmania.
Guggenheim Launching Fund Which Could Have Publicity to Bitcoin
Guggenheim Money Investment Advisors LLC submitted a registration assertion with the U.S. Securities and Exchange Commission (SEC) Tuesday for the Guggenheim Active Allocation Fund. Guggenheim Investments has about $270 billion in overall property under administration across fastened money, equity, and alternate strategies.
The filing describes the fund as “a recently-structured, diversified, shut-finish management investment decision corporation.” Amid the investments that the new fund can commit in are “Cryptocurrency, Digital Property, or Virtual Currency Investments.” The filing states:
The fund may perhaps find financial investment exposure to cryptocurrency (notably, bitcoin) … via cash settled derivatives devices, this kind of as dollars settled trade traded futures, or by way of expense vehicles that present exposure to bitcoin or other cryptocurrencies as a result of direct investments or indirect exposure such as derivatives contracts.
Following outlining the dangers related with investing in bitcoin, the enterprise mentioned that the fund’s “exposure to cryptocurrency may possibly change in excess of time and, appropriately, these types of exposure might not constantly be represented in the fund’s portfolio.”
The Guggenheim filing followed quite a few bearish predictions by the main investment decision officer (CIO) of Guggenheim Associates, Scott Minerd, who is also the chairman of Guggenheim Investments, the international asset administration and investment decision advisory division of Guggenheim Associates.
Although Minerd has a long-expression prediction of $600K for BTC, he has been expressing that the cost of bitcoin will crash in the short expression and could fall 50% to the $20K – $30K amount. Final week, he predicted far more significant market-off for bitcoin following warning of a main correction in April, stating that the cryptocurrency appeared “very frothy.”
According to the SEC submitting, Minerd will be liable for the working day-to-day administration of the Guggenheim Lively Allocation Fund’s portfolio.
Minerd tweeted on May well 28, “Crypto traders be warned: be geared up for a volatile holiday break weekend.” On Could 19, he wrote, “Crypto has established to be Tulipmania. As rates rise, tulip bulbs and cryptocurrencies multiply until eventually supply swamps demand from customers at prior market clearing charges,” elaborating:
This is not the dying of crypto just as the collapse of Tulipmania was not the conclude of tulip bulbs.
Some folks in the crypto neighborhood speculate that Minerd manufactured bearish predictions to make it possible for Guggenheim to buy the dip.
Guggenheim has one more fund that may have publicity to bitcoin. The Guggenheim Macro Opportunities Fund may well search for expenditure publicity to bitcoin indirectly by means of investing up to 10% of its web asset worth in Grayscale Bitcoin Have faith in (GBTC), its SEC filing describes.
What do you feel about Guggenheim launching a fund that could have bitcoin exposure immediately after its CIO known as crypto Tulipmania and predicted the selling price of bitcoin would crash? Allow us know in the remarks section underneath.
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