Guggenheim Investment Runs To Cryptocurrency Due To Excessive Money Printing
Scarcity is an essential feature of money, and money has to be scarce to be valuable. There has been a lot of financial experts criticizing the Federal government’s excessive printing of money. This excessive printing has caused many people to invest their funds into a venture that will help it appreciate overtime even as money rises or falls.
The top three ventures most investors chase are gold, real estate and now Bitcoin. Initially, Bitcoin was used mainly to diversify one’s class of assets. But now, investors see it as a perfect investment plan to safeguard their money against the continuous fall of the cash currency.
How rampant money printing led to the company’s choice
This week, the investment officer of Guggenheim Partners, Scott Minerd, shared his predictions concerning Bitcoin. The Guggenheim Investment, a firm that gives business and investment advice with billions worth of asset under their management.
The investment officer has worked for over twenty years in the firm, equally being one of the firm’s founding partners. Before his days at Guggenheim, he worked for a credit trading group, where he helped managed risks associated with trading. The partner revealed that there is a likelihood the digital asset prices will surge even more.
Late last month, it was revealed by US SEC post-effective amendment filling, that one of Guggenheim investment’s fixed-income funds, which is the macro opportunity fund, could be invested in the digital asset. The opportunity funds explained that it has a goal to give a total return, which has the current income and capital appreciation.
Sources explained that the fund could be efficiently invested into different assets and its most potent strategy is having is a wide range of investments in different assets to benefit from such returns or reduce the risk when things turn south.
How the Macro Opportunity Fund came to be
Financial times released some vital data on the firm’s opportunity fund and revealed that the fund was created in 2011 and with almost $5 billion in worth as at 31st of October. Interestingly, the new post effective filling allows companies who had registered under the SEC to make necessary amendments or even a complete change to its prospectus. The recent amendment explained that there is a current interest in cryptocurrency and that the company is getting some exposure to it. Guggenheim describes crypto as digital assets which can be used as a medium of exchange.
The fund revealed that it could take some bold steps on the recent amendment to indirectly invest in Bitcoin by investing in a Bitcoin trust like the Grayscale Bitcoin trust. The fund could invest as high as 10% of its total net worth to that effect, entirely caused by excessive money printing and the rapid increase in the value of cryptocurrency.
The investor officer also argued that the new decision was based on the Fed’s policy in money printing and that the new amendment was still awaiting some response from the SEC. He predicted that the digital asset could one day be worth up to $400,00, following the volatile nature of the asset.