Guggenheim Investments, an asset management firm with over $ 230 billion under management, has valued bitcoin at $ 400,000 based on a fundamental analysis. Guggenheim wanted to invest in bitcoin when the price of the cryptocurrency was at the $ 10,000 level. The company is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC) to begin investing in bitcoin.
Guggenheim Forecasts $ 400K Bitcoin, Regulation Deferring Investments
Guggenheim Global Chief Investment Officer Scott Minerd spoke of bitcoin’s valuation on Bloomberg Markets on Wednesday as the price of cryptocurrency continues to climb to another record high.
Guggenheim Partners’ global asset management and investment advisory division, Guggenheim Investments, has more than $ 230 billion in assets under management. The company recently informed the SEC that it may be investing 10% of its macro fund in bitcoin.
Minerd was asked about Guggenheim’s decision to buy bitcoin and whether the company has already started buying the cryptocurrency. He was also asked how much of the bitcoin purchase decision was tied to the Federal Reserve’s monetary policy. Minerd explained:
Clearly, bitcoin, and our interest in bitcoin, is tied to Fed policy and the fast money printing that is taking place.
He also revealed that Guggenheim is still waiting for the SEC to light up its fund that will invest in bitcoin. “We are not yet effective with the SEC. We’re still waiting, ”he confirmed.
“We made the decision to start allocating towards bitcoin when bitcoin was at $ 10,000. It’s a little more challenging with the current price of $ 20,000. It’s amazing over a short period of time how little run we had, ”he chose, adding:
That said, our basic work shows that bitcoin should be worth around $ 400,000.
“Even if we had the ability to do that [invest in bitcoin] today, we’re going to monitor the market and see how trading is going, and pricing. But in the end, we’re going to buy it, ”Minard stressed.
On his $ 400,000 price prediction for BTC, Minerd was further asked: “How do you frame bitcoin $ 400,000, how do you get from where we are now up to $ 400,000? Is it just based on scarcity? ”
Guggenheim’s chief investment officer replied, “Yes,” adding:
It is based on the relative scarcity and valuation of things like gold as a percentage of GDP. Bitcoin actually has many gold attributes and at the same time has unusual transaction value.
Guggenheim informed the SEC on November 27 that its “Macro Opportunity Fund could indirectly seek exposure to bitcoin by investing up to 10% of its net asset value in Grayscale Bitcoin Trust (GBTC).”
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