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Cryptocurrency

U.S investment giant, with $295 billion assets plans to buy Bitcoin

Wall Street giant that has about $295 billion assets under management is seeking permission for one of its funds to take a substantial stake in Bitcoin.

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MicroStrategy's Bitcoin holdings now worth $783 million, Canadian investment company buys more Bitcoin, Bitcoin price drops $1400 in minutes, Binance, BTC wallets holdings 0.1 BTC reaches all time high, 13,000 BTC wallets are now worth more than $1,000,000

Global investment powerhouse, Guggenheim Partners is getting ready to invest about $500 million dollars into the flagship crypto asset, Bitcoin.

According to its recent filing with the US Securities and Exchange Commission (SEC), the Wall Street giant has about $295 billion assets under management is seeking permission for one of its funds to take a substantial stake in the Grayscale Bitcoin Trust (GBTC).

READ: Investment bank with over $35 billion assets plans investing in bitcoin

“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. To the extent the Fund invests in GBTC, it will do so through the Subsidiary. Except for its investment in GBTC, the Fund will not invest, directly or indirectly, in cryptocurrencies,” the report said.

READ: World biggest crypto hedge fund: Grayscale Crypto holdings now $9.8 billion

What you should know

The Investment giant, Guggenheim Partners provides services such as investment banking, broker-dealer services in capital markets, and asset management, It has more than $295 billion under its asset management. The elite investment bank is primarily known for its solid investments returns in entertainment and media firms

The investment company, However, spoke on the risks associated in investing such assets, as it took into consideration the very high volatility it often exhibits when compared to other financial instruments, meaning such attributes could result in huge losses for the company.

READ: CardinalStone’s Debut Commercial Paper Issuance records 148% subscription

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“The price of Bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence in the Bitcoin network, or a change in user preference to competing cryptocurrencies. The Fund’s exposure to cryptocurrency can result in substantial losses to the Fund.”

Bottom-line: With a blurry global outlook gradually becoming a daily norm, institutional funds around the globe have been trooping in droves to have a stake in crypto assets, particularly Bitcoin which all have been outperforming other financial assets in 2020.

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Cryptocurrency

Dogecoin post weekly gains of over 450%, more valuable than Barclays and Credit Suisse

The listing of DOGE on Coinbase and other related institutional-focused exchanges could make DOGE’s value rise as high as $1.

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In recent weeks, Dogecoin (DOGE) has become the darling of many crypto traders and investors as it rallied by more than 450% amid high buying pressure.

Even after earlier pullbacks, its current market valuation of about $35 billion makes it more valuable than century-old banks like Barclays and Credit Suisse which have a valuation of $32 billion and $23.9 billion respectively.

The crypto asset, at the time of writing, was the only profitable crypto in the top 5, triggered by Twitter posts from Elon Musk, one of the world’s most powerful and wealthiest person alive.

READ: Crypto market surges above $2 trillion, as Bitcoin stages a huge comeback above $60,500

Market pundits argue that the credence from the world’s leading billionaires like Elon Musk and Mark Cuban might have given the fast-rising crypto enough support amid the recent price correction ongoing in the flagship crypto market.

Crypto pundits also argue that the listing of DOGE on Coinbase and other related institutional-focused exchanges that offer altcoin derivatives could make its value rise as high as $1.

READ: SEC ban on foreign stocks denies Nigerian investors of generational wealth

At the time of writing this report, Dogecoin traded at $0.409118 with a daily trading volume of $35.3 billion. It is currently the fifth most valuable crypto by market value surpassing the likes of Tether, Cardano, and Polkadot.

Dogecoin is a type of digital coin that is decentralized and facilitates peer-to-peer digital transactions. This means you can send money online with much ease. It is usually referred to as “the internet currency.”

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Cryptocurrency

Bank of England considers digital currency

If approved, the digital currency would exist alongside other payment options, rather than replacing them.

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The UK government and the Bank of England are taking landmark steps towards the creation of a central bank digital currency, joining other nations that include China and Bahamas in the digital currency drive.

A press release issued on the government’s website announced the creation of a body with the mandate to coordinate on the possibility of a Bank of England-issued digital money for use by households and businesses.

If approved, the digital currency would exist alongside other payment options, rather than replace them.

READ: Bank of Canada quickens up its digital currency launch

Speaking at Fintech Week, Chancellor Rishi Sunak spoke on the initiatives put in place with regulatory support and structural reforms toward the British drive on a central bank digital currency.

Chancellor of the Exchequer, Rishi Sunak said:

“Our vision is for a more open, greener, and more technologically advanced financial services sector. The UK is already known for being at the forefront of innovation, but we need to go further. The steps I’ve outlined today, to boost growing fintechs push the boundaries of digital finance and make our financial markets more efficient, will propel us forward. And if we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre.

A new Taskforce, bringing together HM Treasury and the Bank of England, will be established to explore a possible UK central bank digital currency (CBDC).

READ: U.S Central Bank leader says no rush into crypto dollar

Two new forums will also be established to engage technical experts and key stakeholders (including financial institutions, merchants, business users, civil society groups, and consumers) through the process.”

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A digital currency is a cash balance recorded electronically on a store value card or other physical devices, which could someday replace the physical notes of the British pound or Naira, for instance.

Digital currencies can be decentralized, a situation where the control over cash supply can come from diverse sources. Digital currencies can also be centralized, a situation where there is a midpoint of control over cash supply, just like the way central banks work.

READ: Crypto crash: 3 major risks involved in investing in Crypto

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The U.S government is also considering a framework for creating a U.S. central bank digital currency, which would be mined through the blockchain protocol, transferred between users, and recorded in a public ledger.

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