Global investment firm Guggenheim Investments has unveiled to the U.S. Stock Exchange a new fund that may seek exposure to Bitcoin (BTC).
According to a presentation on Tuesday, the new Guggenheim Active Allocation Fund will be a closed-ended, diversified management investment fund that can seek investment exposure to digital currency such as Bitcoin through cash-liquidated derivatives. These instruments include futures traded on the exchange, investment tools that offer exposure to BTC, as well as other digital currency through direct investments or indirect exposure, such as derivative contracts, presentation notes.
The company stated that the fund’s exposure to digital currencies could result in substantial losses to the fund, citing a number of risks associated with the industry:
“Digital currency is a technological innovation with a limited history; it is a highly speculative asset and future regulatory actions or policies may limit, perhaps to a materially adverse degree, the value of the Fund’s indirect investment in digital currency and the ability to ‘exchange 1:00 digital currency or use it for payments’.
According to the document, Guggenheim Investment Director Scott Minerd will be responsible for the day-to-day management of the fund’s portfolio along with CIO Assistant Anne Bookwalter Walsh, Managing Director Steve Brown and Director Adam Bloch.
Last year, Guggenheim filed another filing with the SEC, indicating that its Guggenheim Macro Opportunity Fund may seek investment exposure to Bitcoin indirectly by investing up to 10% of its net asset value in Grayscale. Bitcoin Trust.
Minerd is known for his somewhat mixed stance on digital currency and Bitcoin, as the executive referred to the digital currency market as “Tulipmania” after Bitcoin sank to nearly $ 30,000 on May 19. . Despite comparing the digital currency industry to a financial bubble, Minerd remains optimistic about Bitcoin. long-term, predicting earlier this year that BTC could potentially reach $ 600,000.