Guggenheim Files For A New Closed-End Fund Seeking to Invest in Bitcoin and Other Cryptocurrencies

Ahead of the filing with SEC, the Guggenheim Active Allocation Fund sub-advisor Scott Minerd warned crypto investors of a volatile weekend. He pulled a similar move in Jan. before the firm became effective to buy GBTC shares.

Guggenheim Partners has filed for a new fund called Guggenheim Active Allocation Fund that aims to invest in cryptocurrencies, including Bitcoin.

The closed-end Fund is a newly organized, diversified vehicle whose objective is to maximize total return through a combination of current income and capital appreciation. Its common shares are expected to be listed on the New York Stock Exchange under the symbol “GUG.”

The Fund’s sub-adviser seeks to combine a credit-managed fixed-income portfolio with a diversified pool of alternative investments and equity strategies.

Besides other investment exposures, The Fund may also invest in cryptocurrency, notably Bitcoin, reads the document.

This investment in crypto will be made through cash-settled derivatives instruments or through investment vehicles that offer exposure to Bitcoin or other cryptocurrencies through direct investments or indirect exposure.

Besides the usual risks, the Fund also mentions ESG as a potential one; however, the presence of an ESG risk is not necessarily a reason to exclude a specific position from the investment universe rather is treated like other risks.

Interestingly, the new fund has the company CIO Scott Minerd listed as one of the sub-advisor. Before filing with the Securities and Exchange Commission (SEC) on June 1st, Monday, over the weekend, Minerd warned the crypto community to prepare for a volatile holiday weekend.

However, this isn't the first time Minerd pulled such a move. Earlier in January, before the company's filing with SEC for buying Grayscale Bitcoin Trust (GBTC) shares became active, the Chairman asked crypto people to take some profits off the table.

The price of BTC, however, didn’t experience its 50% drawdown until May after hitting a new ATH at nearly $65k in April.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide