Guggenheim Investments: Bitcoin Is Value $400,000 Based mostly on Shortage, Relative Valuation to Gold
Guggenheim Investments, an asset management firm with over $ 230 billion in assets under management, valued Bitcoin at $ 400,000 based on fundamental analysis. Guggenheim wanted to invest in Bitcoin when the price of the cryptocurrency was $ 10,000. The company is currently awaiting approval from the US Securities and Exchange Commission to begin investing in Bitcoin.
Guggenheim forecasts Bitcoin at $ 400,000, regulation delays investments
Scott Minerd, Guggenheim’s global chief investment officer, spoke on Wednesday about Bitcoin’s valuation on Bloomberg Markets as the price of the cryptocurrency continued to hit a new all-time high.
Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners, manages more than $ 230 billion in assets. The company recently announced to 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 had already started buying the cryptocurrency. He was also asked how the decision to buy Bitcoin was linked to the monetary policy of the Federal Reserve. Minerd clarified:
Bitcoin and our interest in Bitcoin are clearly related to Fed policy and the fast printing of money.
He also announced that Guggenheim is still waiting for the SEC to give the green light to its fund, which will invest in Bitcoin. “We’re not yet effective with the SEC. We’re still waiting, ”he confirmed.
“We made the decision to allocate bitcoin when bitcoin was $ 10,000. It’s a little more difficult with the current price of $ 20,000. It’s amazing how big the run we’ve had, ”he said, adding:
However, our foundational work shows that Bitcoin should be worth around $ 400,000.
“Even if we were able to [invest in bitcoin] Today we are going to monitor the market and see how the trading and valuation are going. But in the end we will buy it, ”stressed Minard.
Regarding his price prediction of USD 400,000 for BTC, Minerd was further asked: “How do you shape a Bitcoin of USD 400,000, how do you get to USD 400,000 from where we are now? Is it just based on scarcity? “
The Guggenheim Chief Investment Officer replied “Yes” and said the following:
It is based on the scarcity and relative valuation of things like gold as a percentage of GDP. Bitcoin actually has many gold attributes and an unusual transaction value at the same time.
Guggenheim informed the SEC on Nov. 27 that its “Macro Opportunities Fund may seek indirect exposure to Bitcoin by investing up to 10% of its net asset value in Grayscale Bitcoin Trust (GBTC).”
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