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Guggenheim Fund Files to Be Able to Invest Up to Almost $500M in Bitcoin Through GBTC

Guggenheim Fund Files to Be Able to Invest Up to Almost $500M in Bitcoin Through GBTC

Guggenheim Fund Files to Be Able to Invest Up to Almost $500M in Bitcoin Through GBTC

The Guggenheim Macro Opportunities Fund will now be able to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust.

The Guggenheim Macro Opportunities Fund will now be able to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust.

The Guggenheim Macro Opportunities Fund will now be able to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust.

AccessTimeIconNov 29, 2020, 2:26 AM
Updated Aug 19, 2021, 5:53 AM

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Guggenheim Funds Trust filed an amendment with the U.S. Securities and Exchange Commission to allow its $5 billion Macro Opportunities Fund gain exposure to bitcoin by investing up to 10% of the fund's net asset value in the Grayscale Bitcoin Trust (GBTC).

  • According to the amendment: "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 (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent the Fund invests in GBTC, it will do so through the Subsidiary."
  • Given the fund has net assets of $4.97 billion, according to Fidelity, it means mean the fund can invest up to $497 million in GBTC. Grayscale’s bitcoin trust, a publicly traded financial product that functions similar to an exchange-traded fund (ETF), tracks the price of bitcoin. Guggenheim notes, GBTC trades at a “significant premium.”
  • The Macro Opportunities Fund is part of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners, and has more than $233 billion in total assets across fixed income, equity and alternative strategies.
  • Guggenheim is the latest multibillion-dollar hedge fund to signal an interest in bitcoin. This summer, industry pioneer Paul Tudor Jones’s $22 billion BVI Global Fund could invest “a low-single-digit percentage” of its assets in bitcoin futures. Earlier this month, hedge fund manager Stanley Druckenmiller said bitcoin could outperform gold.
  • Grayscale is a sister company to CoinDesk.

Update (Nov. 29, 18:16 UTC): Adds information about other funds.

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