The Guggenheim, a New York City-based museum dedicated to the arts, has reportedly registered a trust that will allow it to hold bitcoin, while still offering protection to investors in the volatile digital currency. The move comes eight months after Guggenheim director Richard Koshalek called bitcoin a “tulip-mania”, predicting it would soon be worth nothing.
On November 10th, New York-based investment firm Guggenheim Partners filed registration documents on the Securities And Exchange Commission (SEC) in response to reports that the CEO of Guggenheim Partners is now warning of “tulipmania-like” conditions in the market. In a memo to fund executives, CEO Marko Kolanovic said that there is a “tulip-like mania” and that a crash will occur if the market continues to “go down.” He said: “I am very concerned about the macro picture, where asset prices are too high and the risk of a multi-year bear market is very high. I am especially concerned about bitcoin, which is much higher than where it
Billionaire philanthropist and art collector John W. Childs has launched a Bitcoin and cryptocurrency-focused investment fund called the Childs Community Crypto Fund that will allow his clients to get exposure to cryptocurrencies without the risk of holding them outright.Guggenheim has registered a new fund with the US Securities and Exchange Commission (SEC) that may be related to cryptocurrencies, specifically bitcoin. The lawsuit was filed after the chief investment officer of the asset management company repeatedly made bearish predictions about bitcoin, calling the cryptocurrency a maniacal tulip.
Guggenheim launches fund that could be affected by Bitcoin
Guggenheim Funds Investment Advisors LLC filed a registration statement for the Guggenheim Active Allocation Fund with the U.S. Securities and Exchange Commission (SEC) on Tuesday. Guggenheim Investments manages approximately $270 billion in total assets and includes fixed income, equity and alternative strategies. The statement describes the fund as a closed-end, diversified and reorganized investment company. The investments in which the new fund may invest include investments in cryptocurrencies, digital assets or virtual currencies. The statement reads: A Fund may seek exposure to cryptocurrencies (in particular bitcoin) … through cash-settled derivatives, such as exchange-traded futures contracts, or through investment vehicles that provide exposure to bitcoin or other cryptocurrencies through direct investment or indirect exposure, such as derivative contracts. After describing the risks of investing in bitcoin, the firm noted that a fund’s exposure to cryptocurrencies may change over time and, as a result, that exposure may not always be represented in a fund’s portfolio. Guggenheim’s announcement follows several bearish predictions by Guggenheim Partners’ chief investment officer (CIO) Scott Minerd, who is also chairman of Guggenheim Investments, the global asset management and investment advisory arm of Guggenheim Partners. Although Minerd has a long-term forecast for BTC at $600K, he says the price of bitcoin will crash in the short term and could fall by 50% to the $20K to $30K level. Last week, he predicted a sharp drop in bitcoin after warning of a major correction in April and said the cryptocurrency looked very confident. Minerd will be responsible for the day-to-day management of the Guggenheim Active Allocation Fund portfolio, according to an SEC filing. The 28th. May Minerd tweeted: We warn crypto-currency investors: Get ready for an explosive holiday weekend. The 19th. In May, he wrote: Cryptocurrencies have proven to be a manic tulip. As prices rise, tulip bulbs and cryptocurrencies shoot up like mushrooms until supply exceeds demand at previous market prices: This is not the death of cryptocurrencies, just as the collapse of the tulip mania was not the end of tulip bulbs. Some in the crypto community speculate that Minerd made bearish predictions to enable Guggenheim to buy the decline. Guggenheim has another fund that could be linked to bitcoin. The Guggenheim Macro Opportunities Fund may seek to invest indirectly in bitcoin by investing up to 10% of its net asset value in Grayscale Bitcoin Trust (GBTC), the SEC said in a statement. What do you think of Guggenheim’s launch of a bitcoin-related fund after its CIO called the cryptocurrency a maniacal tulip and predicted a collapse in the price of bitcoin? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.If you are looking to invest in Bitcoin you can use the Guggenheim Bitcoin fund to do so. It allows investors to invest in the fund and hold bitcoin without paying any state tax on capital gains and allows you to make Bitcoin investments from your IRA, 401k, and other tax-advantaged accounts without paying any federal tax on gains.. Read more about pimco funds and let us know what you think.
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