FAST FIVE: Guggenheim To Invest Up To $530 Million In Bitcoin After Roubini Twitter Meltdown

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Guggenheim To Invest Up To $530 Million In Bitcoin After Roubini Twitter Meltdown Tyler Durden Sun, 11/29/2020 – 12:25 After relentlessly climbing from its March $4,900 lows, Bitcoin finally saw a modest selloff last week after rising 285% from its lows and 160% since the start of the year prompting even establishment banks such as Deutsche Bank to include it in its grouping of key asset categories.

leading to the now traditional kneejerk response from bitcoin haters such a Nouriel Roubini, who took a bizarre 12-tweet “victory lap” late Thursday as if bitcoin dropping 20% from just shy of its $20K all time high somehow validates his forecast.

Which begs the question: whereas in 2017 it was all the rage to pivot to “blockchain”, we wonder how long before every public company converts some (or all) of its cash and equivalents into bitcoin similar to MicrosStrategy and Square, in hopes of reaping a quick surge in its stock price.

“The Guggenheim Macro Opportunities Fund may seek investment exposure to Bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust,” the firm said in a Friday filing ; in other words Guggenheim can (and probably will) allocate up to $530MM to bitcoin.

Those include prices that “can be highly volatile,” regulatory changes, a crisis of confidence in the Bitcoin network, a change in user preference to competing cryptocurrencies, and trading on “largely unregulated” exchanges that may be more exposed to fraud and failure than regulated, established bourses for other asset classes.

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