Guggenheim CIO says Bitcoin could reach $600,000 in long run

Guggenheim CIO Scoot Minerd
Guggenheim CIO Scoot Minerd

Scott Minerd CIO of Guggenheim said Wednesday that $400,000 to $600,000 is a reasonable price for Bitcoin (BTC). According to Minerd, the cryptocurrency market is growing and becoming important in the global economy. He predicts that the cryptocurrency can reach half a million dollars in the long run. 

“We did a lot of fundamental research, and if you consider the supply of BTC relative to the supply of gold in the world and what the total value of gold is – if BTC were to go to those kinds of numbers, you’d be talking about $400,000 to $600,000 per BTC.” Minerd told CNN. 

Guggenheim is currently the largest digital management fund in the world. The company has over $27.7 billion net assets under management. Furthermore, Guggenheim filed documents with the Securities and Exchange Commission to invest 10% of its net asset value in Grayscale Bitcoin Trust. The company aims to buy $530 million worth of Bitcoin. The SEC already approved the deal and Guggenheim might soon be investing in the digital token. 

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“Guggenheim Macro Opportunities Fund may seek investment exposure to Bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), a privately offered investment vehicle that invests in Bitcoin. To the extent the Fund invests in GBTC, it will do so through the Subsidiary.” Stated the SEC filing.

Guggenheim predicted $400K for Bitcoin before

In fact, Minerd’s comment isn’t the first of its kind. The Wall Street investor told Bloomberg in December that the cryptocurrency should be worth $400,000 because of its limited supply and value compared with gold.

“Our fundamental work shows that Bitcoin should be worth about $400, 000,” Minerd told Bloomberg in December.

Minerd also praised Elon Musk’s support of Bitcoin. He said that Musk’s support to BTC is a “good thing”. Minerd added that he sees Musk as a visionary entrepreneur and his support for Bitcoin is a proof that the crypto industry is gaining approval among billionaires and major companies.

“Elon has definitely proven himself to be a visionary, and I think that cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy”

Ironically, Minerd announced a contradictory tweet in January. He described Bitcoin as unsustainable and urged traders to sell their cryptocurrency. Consequently, Bitcoin traders described the comments as “misleading” and alleged Minerd of playing new traders to sell so Guggenheim can buy BTC at a low price. 

 “Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.” Minerd Tweeted in January.