According to Cointelegraph, the next Wall Street institution to take a public role in Bitcoin investment is Guggenheim Partners, the $275 billion financial services company.
This was revealed in an SEC filing where Guggenheim disclosed its intent to invest in Greyscale Bitcoin Trust (GBTC).
“By investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), the Guggenheim Macro Opportunities Fund may indirectly seek investment exposure to bitcoin,” the filing reads.
Guggenheim’s Preliminary Step into Bitcoin
The Guggenheim Macro Opportunity Fund presently has $5.3 billion in assets under administration and sports a four-star ranking based on risk-adjusted returns out of 270 Nontraditional Bond funds according to independent ratings company Morningstar.
With more than $5 billion in funds under administration, the Macro Opportunities Fund is one of the best-known funds underneath the Guggenheim banner. Unconstrained to a fund, it has the flexibility to invest across a broad array of fixed income securities.
The strategy may opportunistically allocate to other asset classes to potentially enhance return and/or mitigate risk.
It offers exposure to the investment team’s highest-conviction ideas in the current market environment through an unconstrained approach. The strategy opportunistically allocates to other asset classes to potentially enhance return and/or mitigate risk.
As part of an overall fixed-income allocation, the Fund may serve as a potential alpha generator (or source of additional risk-adjusted return) as well as a complement to benchmark-dedicated fixed-income strategies.
This Guggenheim preparatory step into the Bitcoin market appears to be part of a cascading sequence of investments that suggest expanded adoption of Bitcoin by major financial institutions.
Market analytics company Microstrategy acquired almost 40,000 Bitcoins in August, contributing to a parabolic shift in the share price. Similarly, in October, financial services company Square, Inc acquired Bitcoin for $50 million.
What is Guggenheim Partners?
According to the Guggenheim Parners website:
For well over a century, the Guggenheim name has been synonymous with a spirit of innovation and a track record of results. Delivering innovative solutions to the complex challenges facing clients is a hallmark of Guggenheim’s legacy of success.
Our history stems from Guggenheim Brothers, the Guggenheim family business dating back to the late 1800s. Guggenheim Partners began with the mission of creating exceptional value for our clients by applying the principles that made the Guggenheim family one of the most successful innovators, investors, and business managers in American history.
Those principles entailed engaging highly talented people, challenging them to think creatively, and encouraging them to achieve extraordinarily high standards in their fields of expertise.
Today, we continue to uphold the principles of the Guggenheim family by promoting a firm culture that values initiative, encourages ideas, and rewards success.
Guggenheim Partners has been operating for over a century, though only recently has it dipped its toes into the decentralized token market.