Guggenheim Partner, a global investment and financial advisory firm has filed with the SEC for a new investment fund called the Guggenheim Active Allocation Fund. The fund seeks to gain Bitcoin and cryptocurrency exposure via investment in different Bitcoin-based investment vehicles as well as direct purchases. The official SEC filing read,
“The fund may seek investment exposure to cryptocurrency (notably, Bitcoin), often referred to as ‘virtual currency’ or ‘digital currency,’ through cash-settled derivatives instruments, such as cash-settled exchange-traded futures, or through investment vehicles that offer exposure to Bitcoin or other cryptocurrencies.”
The new investment fund would be managed by the chief investment officer Scott Minerd. The filing by the investment firm comes days after Minerd has sounded warning for crypto investors only 4 days back claiming that the weekend would be volatile.
Crypto investors be warned: be prepared for a volatile holiday weekend.
— Scott Minerd (@ScottMinerd) May 28, 2021
Guggenheim like many other investment firms have gained Bitcoin exposure this bull season, but what separates them from many others is the continuous downplaying by its chief investment officer Scott Minerd. This is the second such occasion when Minerd has warned against Bitcoin and crypto investment just days before the firm gained more crypto exposure.
Many believe continuous warnings sounded by Minerd often leads to panic selling which in turn brings the price down allowing the institutional giants to buy Bitcoin at a discount.
Minerd Notorious for Sounding Warning Against Crypto Investment
The chief investment officer of Guggenheim Partner has been cautioning people against Bitcoin investment from the start of this year claiming the price volatility of the crypto market could lead to many losing a significant share of their investment, even when his company continues to buy the digital assets. The passive statements help the mainstream headlines that influence new buyers and steers them away.
Institutions have flocked to Bitcoin this bull season with the likes of Microstrategy and Square buying it throughout this year. Many investment funds and hedge funds have also gained exposure amid growing demand from clients.