Guggenheim has registered a new fund with the U.S. Securities and Exchange Commission (SEC) that could have exposure to cryptocurrencies, particularly bitcoin. The filing came as the asset management firmâ€™s chief investment officer repeatedly made bearish bitcoin predictions, calling cryptocurrency Tulipmania.
Guggenheim Launching Fund Which Could Have Exposure to Bitcoin
Guggenheim Funds Investment Advisors LLC filed a registration statement with the U.S. Securities and Exchange Commission (SEC) Tuesday for the Guggenheim Active Allocation Fund. Guggenheim Investments has about $270 billion in total assets under management across fixed income, equity, and alternative strategies.
The filing describes the fund as â€œa newly-organized, diversified, closed-end management investment company.â€ Among the investments that the new fund can invest in are â€œCryptocurrency, Digital Assets, or Virtual Currency Investments.â€ The filing states:
After outlining the risks associated with investing in bitcoin, the company noted that the fundâ€™s â€œexposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the fundâ€™s portfolio.â€
The Guggenheim filing followed several bearish predictions by the chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, who is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners.
While Minerd has a long-term prediction of $600K for BTC, he has been saying that the price of bitcoin will crash in the short term and could fall 50% to the $20K â€“ $30K level. Last week, he predicted more heavy sell-off for bitcoin after warning of a major correction in April, stating that the cryptocurrency looked â€œvery frothy.â€
According to the SEC filing, Minerd will be responsible for the day-to-day management of the Guggenheim Active Allocation Fundâ€™s portfolio.
Minerd tweeted on May 28, â€œCrypto investors be warned: be prepared for a volatile holiday weekend.â€ On May 19, he wrote, â€œCrypto has proven to be Tulipmania. As prices rise, tulip bulbs and cryptocurrencies multiply until supply swamps demand at previous market clearing prices,â€ elaborating:
Some people in the crypto community speculate that Minerd made bearish predictions to allow Guggenheim to buy the dip.
Guggenheim has another fund that may have exposure to bitcoin. 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), its SEC filing describes.
What do you think about Guggenheim launching a fund that could have bitcoin exposure after 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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