In an interview with Bloomberg Markets on Friday, Scott Minerd, Guggenheim Partners’ chief investment officer, clarified his seemingly conflicting views on Bitcoin’s potential, revealing that select Guggenheim private funds have invested in the cryptocurrency.

Minerd, who oversees Guggenheim’s $ 275 billion in assets under management, called for one sky-high price target of $ 400,000 for Bitcoin in an interview late last year – easily one of the most lofty price predictions of any major institutional head – but recently said in a Tweet last week that the market may be overheating. The turnaround even sparked some playful allegations of market manipulation.

However, as Minerd said on Friday, his long-term bullish price target remains intact, while there may be another bearish pullback in the cards.

“One thing we’re seeing is a sudden interest in retail […] Many crypto outlets are getting overwhelmed, they are starting to throttle orders because they cannot handle demand. “

Once one such body is eToro, it is recently Warned of buyer restrictions starting this weekend. Minerd noted that such strong demand could be a sign of an overburdened rally in the near term, but the storyline eventually shifts in Bitcoin’s favor.

“The other side of that shows that crypto is becoming much more mainstream. The $ 400.00 price I was talking about was based on the supply of gold in the world, and Crypto is more attractive than gold in many ways. ”

Minerd noted advantages such as portability and ease of transaction with Bitcoin over physical precious metal.

When asked if any Guggenheim funds have made the jump to Bitcoin, Minerd said, “I don’t think we have any effect on our mutual funds yet,” although the company would consider allocations as customer demand increases.

However, he revealed that smaller private Guggenheim funds have made the leap.

“We have already bought it in some of our private funds. […] I recommended someone, if you believe what I said it will eventually go to 400,000, 2% of your portfolio will be 20% before this is all over. “

Part of Minerd’s optimism is rooted in a long-term historical analysis. Earlier in the interview, he noted that “we may be entering a golden age” and that “comparisons have been made with the 1920s after the Spanish flu”.

Ultimately, he expects significant retail funds to flow to markets after the Covid pandemic – a pool of money that can also fascinate crypto.