Guggenheim Partners, a $315 billion investment firm, could be looking for further access to the crypto market through a new fund, a Tuesday filing with the Securities and Exchange Commission suggests.
According to this week’s filing, the firm registered the Guggenheim Active Allocation Fund, which will invest in financial products, such as derivatives, whose value tracks that of underlying crypto assets.
“The Fund may seek investment exposure to cryptocurrency (notably, Bitcoin), often referred to as “virtual currency” or “digital currency,” through cash settled derivatives instruments, such as cash settled exchange traded futures, or through investment vehicles that offer exposure to Bitcoin or other cryptocurrencies through direct investments or indirect exposure such as derivatives contracts,” the filing reads.
Notably this is a second Guggenheim fund that may offer exposure to crypto. In November, Guggenheim Funds Trust filed an amendment with the SEC to allow its $5 billion Macro Opportunities Fund to invest up to 10% of the fund’s net asset value in the Grayscale Bitcoin Trust (GBTC), an ETP that tracks the price of bitcoin. Forbes is unable to confirm whether Guggenheim purchased any GBTC shares, and the firm did not respond to questions before publication.
This latest announcement comes after the climbdown from a record-breaking rally, at the peak of which BTC was trading hands for upwards of $63,000. As of June 2 at 4:19 PM E.T. BTC stands at $37,628, almost 40% less than its all-time high. However, Chief Investment Officer of Guggenheim, Scott Minerd, is a long-time champion of Bitcoin who has previously predicted the crypto could reach as high as $400,000 or 600,000.