January 26, 2021

Cryptheory

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SEC approval: firm seeks to invest $500 million in Bitcoins

2 min read

  • Guggenheim seems SEC approval to invest $500 million in Bitcoin
  • The investment company is set to join the like Square and Microstrategy in Bitcoin investments

Guggenheim Partners, one of the largest investment companies in the United States, has requested authorization from the Securities Exchange Commission (SEC) to allow it to allocate some of its net assets in Bitcoin.

Available information has shown that the Wall Street giant made the filing so that Grayscale Investments would be in charge of the 10% investment.

SEC has gone on to mention the different risks that may be attached with investing in cryptocurrency. The regulatory body also described crypto assets as digital assets that can serve as a medium of exchange.

Guggenheim is using one of its funds for this purpose. The fund is called the Macro Opportunities Fund. The fund available in this purse would be used to carry out this investment.

Fidelity Digital Assets and Morningstar have posited that the fund Guggenheim would be drawing from has close to $5 billion under its management in assets. This means that if the fund should carry out the 10% investment, it would be investing in Bitcoin worth $500 million.

Based on the current price of Bitcoin, the investment company would be purchasing over 27,000 BTCs.

SECs approval of Guggenheim will continue trend of institutional investors

If Guggenheim should go ahead with its purchase of $500 million worth of Bitcoin, this would continue the year long trend of institutional investors in the crypto space.

This year alone, we have witnessed institutions like PayPal integrating crypto features into their payment gateway. We have also seen Jack Dorsey’s Square investing in the popular crypto asset.

Not only that, Microstrategy has also invested deeply in the crypto industry.

All of these investments by these major institutions show their growing commitment and interest in cryptocurrencies as a viable store of wealth.

The SEC has also tried to implement a varying level of regulations on the crypto industry. The commission appears to be interested in putting some clarity to the operations of how the crypto market works.

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