{"id":111108,"date":"2021-02-01T20:04:07","date_gmt":"2021-02-01T20:04:07","guid":{"rendered":"https:\/\/precoinnews.com\/?p=111108"},"modified":"2021-02-01T20:04:07","modified_gmt":"2021-02-01T20:04:07","slug":"guggenheim-trust-fund-to-buy-500-million-in-bitcoin-via-grayscale-after-secs-approval","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/guggenheim-trust-fund-to-buy-500-million-in-bitcoin-via-grayscale-after-secs-approval\/","title":{"rendered":"Guggenheim Trust Fund to buy $500 Million in Bitcoin via Grayscale after SEC\u2019s Approval"},"content":{"rendered":"<p>The US Securities Exchange Commission today approved a filing by global investments and advisory firm Guggenheim to invest $500 million into Bitcoin via digital assets manager Grayscale.<\/p>\n<p>According to the US SEC filing, Guggenheim submitted an amendment proposal on November 27, 2020, to allow the firm\u2019s $5 billion Macro Opportunities Fund to gain exposure by investing 10% of its net asset value into Grayscale\u2019s Bitcoin Trust (GBTC). The amendment said:<\/p>\n<p><strong>\u201cThe Guggenheim Macro Opportunities Fund may seek investments exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust, a privately offered investment vehicle that invests in bitcoin. To the extent the fund invests in GBTC, it will do so through the subsidiary.\u201d<\/strong><\/p>\n<h2><strong>Guggenheim as the 3<\/strong><strong><sup>rd<\/sup><\/strong><strong> Biggest GBTC Investor<\/strong><\/h2>\n<p>As the largest digital assets management fund in the world, Grayscale currently has a $27.7 billion net assets under management (AUM) with GBTC accounting for 83% of the total at $22.906 billion.<\/p>\n<p>Guggenheim net assets totaled $4.97 billion at the time of the filing, according to data provided by Fidelity, meaning that the fund could invest up to $497 million into Grayscale\u2019s GBTC.<\/p>\n<p>Fidelity now estimates\u00a0the fund to be worth $5.581 billion which would allow Guggenheim to invest approximately $558 million into BTC via Grayscale. The investment would make Guggenheim the third biggest GBTC stakeholder with a 0.26% stake (1,671,951 shares) at the current price of $34.69 per GBTC.<\/p>\n<p>Ark Investments Management and Horizon Kinetics Assets Management rank in first and second positions with 6,257,925 shares (0.98%) and 2,319,090 (0.36%) shares, respectively.<\/p>\n<h2><strong>Is GBTC A Good Investment in 2021?<\/strong><\/h2>\n<p>GBTC allows investors to gain exposure to Bitcoin in the form of a security.\u00a0The downside to GBTC is that it trades at a massive premium of between 20-30% over the underlying value of bitcoin.<\/p>\n<p>A recent report by Grayscale shows that in Q4 2020, GBTC recorded a return of 26.43% generally moving in line with the price of Bitcoin and therefore prone to wild swings when Bitcoin is highly volatile.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/zycrypto.com\/wp-content\/uploads\/2021\/02\/What-Indias-proposed-Bitcoin-ban-means-for-the-future-of-independent-digital-assets-1024x561.png\"><\/p>\n<p>According to Investor Business Daily\u2019s Michael Larkin, GBTC is not a stable investment right now and investors looking for good stock should study the stock market for other profitable companies.<\/p>\n<p><strong><em>\u201cThose looking to invest in the cryptocurrency market would be best served waiting for a new buy point to emerge. Given the asset&#8217;s history of wild declines, investing at the moment could result in heavy losses.&#8221;<\/em><\/strong><\/p>\n<p>Source: <a href=\"https:\/\/zycrypto.com\/guggenheim-trust-fund-to-buy-500-million-in-bitcoin-via-grayscale-after-secs-approval\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities Exchange Commission today approved<\/p>\n","protected":false},"author":3,"featured_media":111107,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Guggenheim Trust Fund to buy $500 Million in Bitcoin via Grayscale after SEC\u2019s Approval - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/bitcoin\/guggenheim-trust-fund-to-buy-500-million-in-bitcoin-via-grayscale-after-secs-approval\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guggenheim Trust Fund to buy $500 Million in Bitcoin via Grayscale after SEC\u2019s Approval - 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