Guggenheim To Invest Up To $530 Million In Bitcoin After Roubini Twitter Meltdown

This morning we get an answer when Guggenheim Partners, one of the world's biggest fixed income asset managers, jumped on the bitcoin bandwagon when it announced - appropriately enough one day after Roubini's bitcoin meltdown - that it was reserving the right for its $5.3 billion Macro Opportunities Fund, which aims for total return via fixed income and other debt and equity securities, to invest in the Grayscale Bitcoin Trust, whose shares are solely invested in Bitcoin, and track the digital asset’s price less fees and expenses.

"The Guggenheim Macro Opportunities Fund may seek investment exposure to Bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust," the firm said in a Friday filing ; in other words Guggenheim can (and probably will) allocate up to $530MM to bitcoin.

Guggenheim's announcement means that its CIO Scott Minerd joins such legendary traders as Paul Tudor Jones and Stan Druckenmiller, who have already said they’ve put money into the digital asset. More importantly he ensures that laughably clueless hacks, who have zero comprehension of how money or markets operate, will be busy bashing bitcoin for years to come as the cryptocurrency hits $100,000 then $1 million and so on.

Guggenheim’s filing, which describes cryptocurrencies as "digital assets designed to act as a medium of exchange,” also lists a wide variety of risks. Those include prices that “can be highly volatile,” regulatory changes, a crisis of confidence in the Bitcoin network, a change in user preference to competing cryptocurrencies, and trading on “largely unregulated” exchanges that may be more exposed to fraud and failure than regulated, established bourses for other asset classes.

In other words, nothing new for anyone who has been long the cryptocurrency over the past few years, and certainly nothing new for regular readers who bought bitcoin as per our advice back in September 2015 when it was trading just over $200.

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William K. 2 months ago Member's comment

This would not be the first time in history that a bunch of "experts" have been fooled or otherwise mislead into incorrect pronouncements, with the result that the wrong people gained a large benefit.