The Guggenheim has registered a new fund with the US Securities and Exchange Commission (SEC) that may be exposed to cryptocurrencies, specifically bitcoin. The filing comes after the chief investment officer of the asset management firm has repeatedly made predictions about bitcoin, the cryptocurrency known as Tulipmania.
Guggenheim Launching Fund That Could Exposure to Bitcoin
Guggenheim Funds Investment Advisors LLC filed A registration statement for the Guggenheim Active Allocation Fund with the US Securities and Exchange Commission (SEC) on Tuesday. Guggenheim Investments has approximately $270 billion in total assets under management in fixed income, equities and alternative strategies.
The filing describes the fund as “a newly-organized, diversified, closed-end management investment company.” The investments the new fund can invest in include “cryptocurrency, digital assets or virtual currency investments.” The filing stated:
The fund may seek investment exposure to cryptocurrencies (specifically, bitcoin) … through cash-settled derivative instruments, such as cash-settled exchange-traded futures, or through investment vehicles that offer direct investment or indirect exposure. As such, derivatives provide exposure to bitcoin or other cryptocurrencies through contracts. .
After outlining the risks associated with investing in bitcoin, the company noted that the fund’s “exposure to the cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the fund’s portfolio.” “
Scott Minrad, chief investment officer (CIO) of Guggenheim Partners, who is also president of Guggenheim Investments, who is also president of Guggenheim Partners’ global asset management and investment advisory division, predicted several downturns.
Whereas Minrad has a long-term prediction $600K For B T c, he is saying that the price of bitcoin will crash in the short term and may drop 50% Up to the level of $20K – $30K. Last week, he predicted more heavy selling After a warning for bitcoin major improvements In April, stating that the cryptocurrency looks “very foamy“
According to an SEC filing, Minrad Guggenheim will be responsible for the day-to-day management of the Active Allocation Fund’s portfolio.
“Crypto investors be warned: be prepared for a volatile holiday weekend,” Minrad tweeted on May 28. On May 19, he wrote, “Crypto has proven to be tulipmania. As prices rise, tulip bulbs and cryptocurrencies increase until supply meets demand at previous market clearing prices.”
It’s not the death of crypto like the fall of tulipmania wasn’t the end of the tulip bulb.
Some in the crypto community speculate that Minerd predicted a recession to allow the Guggenheim to buy the dip.
The Guggenheim has another fund that could invest in bitcoin. The Guggenheim Macro Opportunities Fund may indirectly seek investment exposure in bitcoin by investing up to 10% of its net asset value in the Grayscale Bitcoin Trust (GBTC), its SEC filing suggests.
Why do you think the Guggenheim launched a fund that might have exposure to bitcoin, its CIO called Crypto Tulipmania and predicted the price of bitcoin would crash? Let us know in the comments section below.
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