This Hedge Fund Wants to Invest $500 Million in Bitcoin
A massive hedge fund
might be about to invest $500 million in Bitcoin — in yet another sign
that institutional money is flooding into the space. Guggenheim Partners,
a firm that claims to have $295 billion in assets under management,
revealed the plans in a filing with the U.S. Securities and Exchange
Commission. At this stage, it merely wants to “reserve the right” to dedicate up
to 10% of its $5 billion Macro Opportunities Fund to the world’s biggest
cryptocurrency — but the fact it’s mentioned these plans in an SEC filing must
mean it’s pretty serious. The investment doesn’t mean that Guggenheim is
going to start raiding major exchanges and snapping up BTC on the spot market.
Instead, it will gain this exposure by pouring this cash into the Grayscale
Bitcoin Trust, which has amassed BTC worth $10.1 billion after
buying the crypto faster than it can be mined. Guggenheim
was upfront about the risks associated with dipping its toe into the world of
digital assets, describing Bitcoin as “highly volatile.” Setting out the
dangers, it said: Why this news matters Now, it’s worth noting that this SEC
filing was made on Nov. 27 — and the plans were probably drawn up before
Bitcoin crashed by 15% in the run-up to Thanksgiving. Nonetheless,
crypto analysts are excited by Guggenheim’s plans, as it suggests that
institutional investors are still interested in BTC despite the recent, nasty
correction. This could also mean that Guggenheim will start rubbing shoulders
with the likes of PayPal, Square and Grayscale, all of which are buying Bitcoin
heavily right now. Learn more about crypto’s big spenders! Over on CoinMarketCap
Alexandria, we recently wrote about the institutions buying up all the Bitcoin —
and explored what the future of cryptocurrencies could be in 2021 and beyond.
All the headlines, in your inbox We’ve got more about this story and plenty more
in today’s newsletter. Subscribe here for breaking news, a daily market summary,
fun polls and all the latest crypto jobs!
A massive hedge fund
might be about to invest $500 million in Bitcoin — in yet another sign
that institutional money is flooding into the space. Guggenheim Partners,
a firm that claims to have $295 billion in assets under management,
revealed the plans in a filing with the U.S. Securities and Exchange
Commission. At this stage, it merely wants to “reserve the right” to dedicate up
to 10% of its $5 billion Macro Opportunities Fund to the world’s biggest
cryptocurrency — but the fact it’s mentioned these plans in an SEC filing must
mean it’s pretty serious. The investment doesn’t mean that Guggenheim is
going to start raiding major exchanges and snapping up BTC on the spot market.
Instead, it will gain this exposure by pouring this cash into the Grayscale
Bitcoin Trust, which has amassed BTC worth $10.1 billion after
buying the crypto faster than it can be mined. Guggenheim
was upfront about the risks associated with dipping its toe into the world of
digital assets, describing Bitcoin as “highly volatile.” Setting out the
dangers, it said: Why this news matters Now, it’s worth noting that this SEC
filing was made on Nov. 27 — and the plans were probably drawn up before
Bitcoin crashed by 15% in the run-up to Thanksgiving. Nonetheless,
crypto analysts are excited by Guggenheim’s plans, as it suggests that
institutional investors are still interested in BTC despite the recent, nasty
correction. This could also mean that Guggenheim will start rubbing shoulders
with the likes of PayPal, Square and Grayscale, all of which are buying Bitcoin
heavily right now. Learn more about crypto’s big spenders! Over on CoinMarketCap
Alexandria, we recently wrote about the institutions buying up all the Bitcoin —
and explored what the future of cryptocurrencies could be in 2021 and beyond.
All the headlines, in your inbox We’ve got more about this story and plenty more
in today’s newsletter. Subscribe here for breaking news, a daily market summary,
fun polls and all the latest crypto jobs!
