The company has filed to allocate an almost $5 billion (£3.75 million) macro opportunities fund to be used to invest in bitcoin. On Friday the global asset management firm Guggenheim Investments filed an amendment to the Securities and Exchange Commission that will allow them to invest up to 10 percent of their fund in bitcoin. Fintech investor Kevin Rooke puts this amount into perspective when he tweeted: “A 10 percent investment would be worth $487million (£365 million), and would be $200million (£150 million) larger than their next largest position.”
CSO at Blockstream Samson Mow tweeted: “Billion dollar asset funds are now allocating hundreds of millions to buy bitcoin.”
He added: “You might think $20k (£15K), $30k (£22K) or $100k (£75K) per bitcoin is expensive, but to a public market company with billions in cash reserves melting away, it’s dirt cheap.”
Speaking to Express.co.uk bitcoin pioneer Max Keiser said: “The current bitcoin sell-offs are on weak volume and completely inconsequential.
“The rallies are bringing in bigger and bigger volume and catching the attention of the whole world.”
Many analysts see “Big Money” from hedge fund managers such as Paul Tudor Jones, billionaire investor Stan Druckenmiller and the investment from large financial institutions as driving the renewed bitcoin rally.
They also claim that the value of the cryptocurrency can go much higher.
The world’s pre-eminent cryptocurrency rallied on another bull-run this week.
The value of bitcoin has risen by 50 percent over the month of November.
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“The upside is still huge, like 80 times.
“This is why institutions are pouring in now.
“The risk has never been lower.”