Guggenheim Investments, an asset manager with more than $ 230 billion under management, has valued bitcoin at $ 400,000 based on fundamental analysis. Guggenheim wanted to invest in bitcoin when the cryptocurrency’s price hit the USD 10,000 level. The company is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC) to begin investing in bitcoin.
Guggenheim predicts $ 400K Bitcoin, regulation slows investment
Guggenheim Global Chief Investment Officer Scott Minerd spoke about bitcoin’s valuation on Bloomberg Markets on Wednesday as the cryptocurrency’s price continued to rise to a new all-time high.
Guggenheim Investments, the global wealth management and investment advisory arm of Guggenheim Partners, has more than $ 230 billion in assets under management. The company recently informed the SEC that it may invest 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 related to the Federal Reserve’s monetary policy. Minerd clarified:
Clearly, bitcoin, and our interest in bitcoin, is related to Fed policies and the fast money printing that is going on.
He also revealed that Guggenheim is still waiting for the SEC to give the green light to its fund that will invest in bitcoin. “We are not yet effective at the SEC. We are still waiting, ”he confirmed.
“We made the decision to start allocating to bitcoin when bitcoin hit $ 10,000. It’s a bit more challenging with the current price of $ 20,000. It’s amazing how big the run we’ve had in such a short time, ”he said, adding:
That said, our fundamental work shows that bitcoin should be worth around $ 400,000.
“Even if we had the opportunity to do that [invest in bitcoin] today we are going to monitor the market and see how the trade is going, and the valuation. But in the end we will buy it, ”Minard emphasized.
With regard to its price prediction of $ 400,000 for BTCMinerd was further asked, “How do you frame a $ 400,000 bitcoin, how do you get from where we are now $ 400,000? Is it based solely on scarcity? “
The Guggenheim’s chief investment officer replied, “Yes”, explaining:
It is based on the scarcity and relative valuation of things like gold as a percentage of GDP. Bitcoin actually has many of the trappings of gold and at the same time has an unusual transaction value.
Guggenheim informed the SEC on Nov. 27 that its “Macro Opportunities Fund may indirectly seek to invest in bitcoin by investing up to 10% of its net asset value in Grayscale Bitcoin Trust (GBTC).”
What do you think of Guggenheim’s bitcoin price prediction? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services, or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.