Guggenheim ‘Already Purchased’ Bitcoin in Private Funds, But Not Effective For Any of Mutual Funds Yet: CIO

Scott Minerd sees “a lot of upside” potential in Bitcoin and other cryptos as such recommends “allocation of a couple of percent of your portfolio.”


Guggenheim Partners’ Global Chief Investment Officer Scott Minerd is seeing a lot of retail interest in the market for Bitcoin, which according to him, is pointing to a short-term “speculative frenzy,” but he certainly recommends investors to allocate a “couple of percent” in cryptocurrencies to their portfolios.

“I think one thing that we're seeing is the sudden interest in retail,” Minerd told Bloomberg, pointing to the record amounts of trading volume on cryptocurrency exchanges overwhelming them.

While exchanges like Coinbase, Kraken, and Binance shut down during such heightened activity, recently, trading platform eToro notified its customers that it might limit their purchase orders.

With so much demand coming in, the limited supply of Bitcoin makes it hard for these platforms to handle them. And what it means in the short term is “we're moving into a speculative frenzy,” he said.

And according to him, this was the reason behind his tweet earlier this week about “perhaps” it’s time to take money off the table. Minerd said,

“But the other side of that is it's demonstrating that crypto is becoming much more mainstream.”

At the time, crypto Twitter (CT) speculated this call as a buy the dip opportunity from the CIO of a global investment firm, and that may be true because they did buy some BTC.

“In some of our private funds we have already purchased it.”

Meanwhile, he confirmed that Guggenheim isn’t able to buy crypto on behalf of its investors yet as it is still pending approval from the SEC. “Don't really think we're effective yet for any of our mutual funds,” Minerd added,

“we're going to take the feedback of our clients in terms of what they would like us to do. But it's nice to know the flexibility is there if it's in the good interests of the clients.”

Explaining his $400,000 BTC price moon target, he said in the interview that this was really based on the supply of gold in the world. But Bitcoin, in a lot of ways, is more attractive than the precious metal, he said.

Besides being portable, it can be used to buy things with, and people want to be paid in BTC as well. Pointing to Carolina Panthers’ Russell Okung, who has become the first NFL player to get half of his salary in BTC, Minerd said, “the acceptability of crypto is rising rapidly.”

As such, “I think Bitcoin and other cryptocurrencies potentially have a lot of upside,” Minerd said.

This huge uptrend — which will make 2% of your portfolio to be 20% “before this is over” if one does believe in his $400k call — is why Minerd recommends “certainly an allocation of a couple of percent of your portfolio” that “seems to be a prudent thing.”

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