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Guggenheim says it could invest up to $ 530 million in bitcoin trust as cryptocurrency jumps to record highs | Currency News Financial and business news



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  • Guggenheim Partners revealed in a regulatory statement Friday that its Macro Opportunity Fund has the right to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust.
  • The trust invests only in bitcoin, and a 10% stake in the Guggenheim fund will amount to approximately $ 530 million.
  • The cryptocurrency on Monday jumped to the highest intraday high of $ 19,873.23, overshadowing the record from December 201
    7 before reporting earnings.
  • Watch the bitcoin trade live here.

Guggenheim Partners is the newest Wall Street company interested in bitcoins, and on Friday regulatory declarations signaled that the company could make a huge investment in the soaring cryptocurrency.

The Guggenheim revealed in a statement by the Securities and Exchange Commission released on Friday that its Macro Opportunity Fund has the right to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust. The trust invests only in bitcoin, allowing its shares to serve as a proxy for the popular cryptocurrency.

The fund manages approximately $ 5.3 billion in assets, making a 10% investment of about $ 530 million.

The Guggenheim described cryptocurrencies as “digital assets created as a medium of exchange.” The company added that while it could gain exposure to bitcoin through its trust in Grayscale, it had no other plans to invest directly or indirectly in cryptocurrencies.

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Bitcoin hit a record high on Monday, surpassing the record of $ 19,511 set in December 2017. The token jumped to $ 19,873.23 before reporting some gains.

The Guggenheim joins other heavy weights on Wall Street, which have expressed a bull to the unstable chip. Mike Novogratz, a former hedge fund manager who has long insisted on the widespread use of cryptocurrencies, praised PayPal’s decision to accept them in October, describing it as an “exciting day” for the technology.

“All banks will now compete to service crypto,” he wrote on October 21. “We passed the people from the Rubicon.”

Read more: “Stock markets have become casinos”: A former Wall Street chief strategist unloads toxic stories fueling a speculative bubble – and asks investors to heed the 1999 and 2007 warnings.

Billionaire investor Paul Tudor Jones also backed Bitcoin last month, calling the asset “the best inflation trading.” With the Federal Reserve temporarily allowing inflation above 2%, Bitcoin’s decentralized nature protects its value from faster price growth, Jones said.

The Guggenheim Declaration suggests that the company is optimistic about bitcoins, but still sees several risks to the coin’s leak. The share of bitcoins could fall victim to its “highly volatile” nature, the company said in a statement. He added that the value of the cryptocurrency “may fall sharply” due to reasons, including regulatory changes, a change in consumer preferences for a competing marker or a “crisis of confidence” in the bitcoin network.

Bitcoin was trading at $ 19,232.35 at 12:25 ET, which is approximately 166% so far.

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