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$5.3 Billion Trust Fund to Allocate 10% of Assets in Bitcoin

Nov. 30, 2020

Another multi-billion-dollar trust fund has formalized its intentions to gain exposure to Bitcoin.

$5.3 Billion Trust Fund to Allocate 10% of Assets in Bitcoin

Global investment firm Guggenheim Trust Fund filed an SEC application last Friday to purchase Grayscale’s Bitcoin product, GBTC. The fund can invest north of $500 million in GBTC.

Bitcoin’s Macro Opportunity

Guggenheim Macro Opportunities (GIOIX) is one of eight funds managed by the parent firm, Guggenheim Trust Fund, with a $233 billion net value.

The SEC filing, dated Nov. 30, reads:

“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’).”

The fund’s profile consists of fixed-income assets such as bonds and cash.

According to Bloomberg, the asset under management (AUM) of GIOIX is $5.3 billion, extending their GBTC margin to $530 million.

Grayscale LLC is the world’s largest cryptocurrency trust fund with over $12 billion in AUM. Its Bitcoin Trust Fund (GBTC) manages over $9 billion in BTC.

Currently, Microstrategy Inc. has the largest exposure to the leading crypto among publicly-listed companies. In August and September, the firm invested $425 million in BTC, which is presently valued at $713 million.

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