Guggenheim’s new Finance may seek exposure to Bitcoin, SEC filing Reveals

The new Guggenheim Active Allocation Fund will likely be quite a diversified, closed-end management investment fund which may seek investment exposure to cryptocurrencies.
International investment firm Guggenheim Investments has registered with the United States Securities and Exchange for a new fund which may find exposure to Bitcoin (BTC).According to a Tuesday filing, the new Guggenheim Active Allocation Fund will soon likely be a diversified, closed-end management investment fund which will seek investment exposure to cryptocurrencies like Bitcoin through cash-settled derivatives tools. Such tools incorporate exchange-traded futures, investment tools offering exposure to BTC in addition to some other cryptocurrencies through direct commissions or indirect exposure such as derivatives contracts, and the submitting notes.The firm said that the fund’s exposure to crypto could lead to significant losses to the fund, mentioning a range of dangers connected to the sector:”Cryptocurrency is a new technological innovation with a history; it’s a highly speculative advantage and potential regulatory actions or policies may limit, possibly to a materially negative extent, the value of this Fund’s indirect investment in cryptocurrency and also the capacity to trade a cryptocurrency or utilize it for obligations.” According to the record, Guggenheim’s primary investment officer Scott Minerd is going to be responsible for the day-to-day management of this fund’s portfolio along with assistant CIO Anne Bookwalter Walsh, managing director Steve Brown, along with manager Adam Bloch.Last year, Guggenheim placed another SEC filing, stating that its Guggenheim Macro Opportunities Fund might seek out investment exposure to Bitcoin shortly through investing up to 10 percent of its net asset value in Grayscale Bitcoin Trust.Minerd is famous for his somewhat mixed stance on crypto and Bitcoin as the executive referred to the crypto market as”Tulipmania” later Bitcoin sank to nearly $30,000 on May 19. Despite comparing the crypto sector to some monetary bubble, Minerd remains bullish on Bitcoin at the very long term, forecasting earlier this year which BTC can hit $600,000.

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