Jefferies’ Chris Wood Increases Bitcoin Holdings To 10% At The Cost Of Gold By BTC Peers

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© Reuters. Jefferies’ Chris Wood increases Bitcoin holdings to 10% at the expense of gold

Jefferies (NYSE 🙂 global head of equities, Christopher Wood, has joined the group of investors who are ditching gold for more exposure. He reduced his position in gold to expand his investment in the world’s largest cryptocurrency.

Wood believes traditional financial institutions like banks should focus on blockchain and promote the technology instead of anticipating its downfall.

This is not the first time that Wood has lost gold to Bitcoin. In December 2020, it reduced the gold stock in its long-term asset allocation for USD-based pension funds from 50% to 45%.

Interestingly, Wood hasn’t always been a fan of the digital asset. He had carefully avoided crypto investments in the past due to security concerns. However, he has changed his mind as have most of the institutional players of recent times. While he still maintains his bullish stance on the yellow metal, he also believes it may be unwise to ignore the revolution fueled by Bitcoin and other cryptocurrencies.

According to the Economic Times, Jefferies presented a note to its investors suggesting that if blockchain technology manages to infiltrate the mainstream financial space by bypassing the need for third parties and middlemen, it could also lead to the downfall of the “dollar paper standard”.

While comparing BTC to gold, Wood admitted that the latter’s performance had been extremely disappointing, especially with negative rates in the United States. For this reason, he believes the highly anticipated ETF launch in the country highlights the need for further adjustments to the global portfolio of US dollar-denominated pension funds.

Meanwhile, Wood has yet to consider adding to his portfolio despite his renewed position on Bitcoin. The executive reiterated its previous position regarding Ethereum, establishing that it did not intend to include ETH in a pension fund portfolio as it is not an asset ” of value reserve ”. However, he felt that the major altcoin has the potential to outperform Bitcoin in the near future.

The current assets in the executive’s portfolio are 10% exposure to BTC, 40% gold, 30% Asian stocks (excluding Japan) and 20% unhedged gold mining stocks.

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