The asset-management firm Guggenheim Partners, with assets under management of more than $350 billion, registered a fund with the ability to invest in Bitcoin.
The objective of the Guggenheim Active Allocation Fund is to maximize return through a combination of current income and capital appreciation. To that end, the fund plans to include a broad range of securities in its portfolio and diversify it with a pool of alternative investments.
One of the potential investment avenues is the leading cryptocurrency.
“The fund may seek to invest in cryptocurrency (specifically Bitcoin) using cash-settled derivatives, such as exchange-traded futures, or through investment instruments that provide access to digital assets via direct or indirect exposure,” the prospectus states.
The document notes asset-related risks, including high price volatility. The development of cryptocurrencies could be influenced by many factors, including potential regulation and government restrictions, the overall economic environment, cyber risks, and others, according to Guggenheim Partners.
The fund will be managed by a subsidiary of Guggenheim Funds Investment Advisors. Another subsidiary, Guggenheim Partners Investment Management, will be responsible for the securities portfolio.
Shares of Guggenheim Active Allocation Fund are planned to begin trading on the New York Stock Exchange under the ticker GUG.
Earlier this year, in May, Guggenheim Partners’ investment chief Scott Minerd, amid a market rout, described cryptocurrencies as a bubble. In April, he warned of a possible Bitcoin correction to $20,000.
However, the long-term outlook for the flagship is not in doubt, with his forecast suggesting the price could rise to $600,000.
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