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Second richest family "Guggenheim" investment officer: Bitcoin price should be $400,000, started building position at $10,000

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Second richest family "Guggenheim" investment officer: Bitcoin price should be $400,000, started building position at $10,000

Scott Minerd, the Chief Investment Officer of Guggenheim Partners, the investment management firm owned by the Guggenheim family, the second richest family in the world after the Rothschilds, stated in a phone interview with Bloomberg TV on December 16 that the value of Bitcoin should be 20 times the current market price after Bitcoin surpassed $20,000.

Fundamental Analysis: Bitcoin Could Reach $400,000

Scott Minerd stated in an interview:

"Our fundamental research suggests that the value of Bitcoin should be $400,000. However, even if Bitcoin has this potential, we must continue to monitor the market and observe trading conditions."

Scott Minerd added that the estimated value of $400,000 for Bitcoin comes from its inherent scarcity, relative valuation to gold, similar attributes to gold, and its unique value in trading, all of which form the basis for Guggenheim's $400,000 valuation of Bitcoin.

Furthermore, Scott Minerd revealed in the interview that Guggenheim established a Bitcoin position when the price was around $10,000, with costs similar to those of a Nasdaq-listed company building positions in July and August. At current prices, Guggenheim's Bitcoin investment has yielded over 100% returns.

Investing in Bitcoin Trust Fund (GBTC)

Perhaps due to the remarkable returns from their investments, bringing greater confidence, Guggenheim submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) in November and plans to allocate 10% of its $5.3 billion Macro Opportunities Fund to Grayscale's Bitcoin Trust Fund (GBTC). If approved, this means Guggenheim could indirectly invest up to $500 million in investment products related to the cryptocurrency market.

The adoption of Bitcoin by traditional financial institutions seems to be becoming more common. Recent examples include MassMutual Financial Group in the U.S. announcing this month that it purchased $100 million worth of Bitcoin for its general investment account through NYDIG. Ruffer Investment in the UK also disclosed that 2.5% of its Ruffer Multi-Strategies Fund is invested in Bitcoin.

More and more financial institutions are showing interest in Bitcoin. At the time of writing, Bitcoin has surpassed historical highs and entered uncharted price territory, making future price levels highly anticipated.