US financial giant invests $ 500 million in bitcoin

U.S. financial services giant Guggenheim Partners has applied to the SEC for permission to invest inBitcoin (BTC) through Grayscale up to $500 million.

Guggenheim Partners is one of the largest companies providing investment and advisory financial services.The investment in bitcoin is planned through one of the Funds Macro Opportunities Fund.

According to the application, the Fund plans to spend 10% of its net assets on the purchase of bitcoins, in total, according to Fidelity and Morningstar estimates, under the management of the fund are assets worth about $5 billion.Accordingly, it is a purchase worth $500 million.

Considering that at the time of writing the price of the cryptocurrency fluctuated in the region of $18,000, the allocated amount would allow to acquire about 27,650 bitcoins.

The SEC's application describes the cryptocurrency as "digital assets intended for use as an exchange."It also lists the risks associated with investing in cryptocurrency.

These include the lack of regulation of digital asset exchanges, the "significant premium" of GBTC, as well as uncertainty regarding taxation, legislation, etc.

2020 was the year of BTC's largest institutional purchases, especially if Guggenheim sellsyour strategy.

Investors buy up bitcoin in hope of growth

Since May of this year, institutional investors and bitcoin whales began to massively increase investments in bitcoin.This is evidenced by the last studies of the crypto exchange OKEH and Catallact.At the same time, the greatest investor activity was observed in June-August.Then dozens of large transactions were recorded.Researchers can't tell exactly who sent the coins in this number and to whom they were intended.

“It is possible that one or more cryptocurrencyexchanges that hold extremely large amounts of BTC have been shuffling coins into various wallets for a variety of reasons, most likely security related. There is also the possibility that large institutional players and deep-pocketed whales have accumulated or distributed large amounts of BTC during this consolidation period in anticipation that the price of the leading cryptocurrency will rise or fall.”, the study said.

Despite this activity, large investors still fear that over-regulation of the market will ultimately lead to them not being able to freely buy and sell cryptocurrency.

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