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Guggenheim Macro Opportunities Fund Considering Investing Up to $500M in Bitcoin

According to a U.S. SEC post-effective amendment filing made by Guggenheim Funds Trust on Friday (November 27), one of its fixed income mutual funds (“Macro Opportunities”) is considering investing in Bitcoin.

Guggenheim Investments is “the global asset management and investment advisory division of Guggenheim Partners and has more than $233 billion in total assets across fixed income, equity and alternative strategies.” It focuses on “the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, wealth managers and high net worth investors.”

According to an overview of the Guggenheim Macro Opportunities Fund (ticker: GIOIX), it “seeks to provide total return, comprised of current income and capital appreciation.” The fund “has the flexibility to invest across a broad array of fixed income securities,” and its investment strategy “may opportunistically allocate to other asset classes to potentially enhance return and/or mitigate risk.”

According to data by the Financial Times, this fund was launched on 30 November 2011, and its total net assets was $4.97 billion (as of 31 October 2020).



The SEC filing made on November 27 is known as an “SEC POS AM” (aka “post-effective amendment”) filing. This type of filing “allows a company registered with the SEC to update or amend its prospectus.”

This filing stated that the fund is considering getting some cryptocurrency exposure:

“Cryptocurrencies (also referred to as ‘virtual currencies’ and ‘digital currencies’) are digital assets designed to act as a medium of exchange. 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 (“GBTC”), a privately offered investment vehicle that invests in bitcoin.”

Grayscale Bitcoin Trust (ticker: GBTC) is “a traditional investment vehicle with shares titled in the investors name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws.” Each share is worth 0.00095189 BTC. This publicly-quoted Bitcoin investment vehicle is offered by Grayscale Investments, which is a subsidiary of Digital Current Group (DCG).

 

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