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- Guggenheim Partners disclosed in a regulatory filing on Friday that its MacCro Opportunity Fund has the right to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust.
- The trust invests entirely in Bitcoin, and a 10% stake in Guggenheim’s fund will be worth about 5 530 million.
- Cryptocurrency gain reached a all-time intraday high of 19,873.23 on Monday, beating the record set in December 2017, before surpassing the gain.
- Watch the Bitcoin trade live here.
Guggenheim Naheim Partners is the latest Wall Street Pay firm to show interest in Bitcoin and could invest heavily in the growing cryptocurrency on Friday with regulatory filing signals.
Guggenheim has revealed in a Securities and Exchange Commission filing released on Friday that it has the right to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust. The trust invests entirely in Bitcoin, serving its shares as a proxy for popular cryptocurrencies.
The fund manages approximately 3 5.3 billion in assets, with a 10% investment of approximately 30 530 million.
Guggenheim described cryptocurrency as a “digital asset designed as a medium of exchange.” The pay firm added that, although it may be exposed to Bitcoin through the Grayscale Trust, it has no other plans to invest directly or indirectly in its cryptocurrency.
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Bitcoin charged a record high on Monday, surpassing the December 2017 record of $ 19,511. The token went to the level of 19,873.23 dollars before surpassing some gains.
Guggenheim joins other Wall Street heavyweights who have expressed a boom towards volatile tokens. Mike Novogratz, a former hedge-fund manager who has long pushed for widespread use of cryptocurrencies, praised PayPal’s decision to adopt in October, describing it as an “exciting day” for Technol for G.
“Now all banks will be in the race to serve crypto.” Tweeted On 21 October. “We have surpassed the Rubikan people.”
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Billionaire investor Paul Tudor Jones also backed Bitcoin last month, calling the asset the “best inflation trade”. The Federal Reserve is ready to temporarily allow inflation to exceed 2%, the decentralized nature of Bitcoin protects its price from rapid price growth, Jones said.
Guggenheim’s filing suggests that the firm is optimistic about Bitcoin but still sees many risks to running the coin. Bitcoin’s stake could fall victim to its “extremely volatile” nature, Payday said in the filing. It added that the value of cryptocurrencies could “fall immediately” for reasons including regulatory changes, changes in user preferences on competitive tokens, or a “crisis of confidence” in the Bitcoin network.
Bitcoin trades at :2 19,232.35 as of 12:25 ET, up about 166% year-over-year.
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