Digital is better: investment guru switches gold into bitcoin
Christopher Wood, macro investor and crisis prophet by trade, is shifting part of his gold position into Bitcoin. This adds another notable investor to “Team Bitcoin”.
The dominant bitcoin theme in 2020 has arguably been the influx of institutional investors into the crypto market. As announced on Friday 18 December, another Bitcoin Hero big-name investor has jumped on the crypto bandwagon.
Christopher Wood, Global Head of Equity Strategy at investment bank Jefferies Group, is selling part of his gold position in favour of Bitcoin. This was first reported by Business Insider, citing GREED & fear, an investment newsletter for professional investors published by Wood.
According to the report, Wood will reduce the gold position from his pension fund from 50 percent to 45 percent and invest the proceeds in BTC. The investment strategist, who is known for predicting the subprime crisis in the USA in 2007, remains a gold bull. But should BTC correct significantly downwards, Wood reserves the right to expand his crypto position even further.
The 50 per cent weighting of physical gold bullion in the portfolio will be reduced by five percentage points for the first time in several years. I will invest the proceeds in bitcoin. If there is a large drawdown in bitcoin from current levels following the historic breakout above the 20,000-USD mark, the intention will be to add to this position,
Wood writes in GREED & fear.
Chris Wood has been looking at Bitcoin for quite some time. Until now, however, the risks were too great or incalculable. It was not clear whether BTC was really immune to hacks. The sword of Damocles of a ban has also kept him from allocating to the “Orange Coin”.
In addition to the five per cent Bitcoin position and the 45 per cent position in physical gold, Wood holds 30 per cent in the Asian stock market (excluding Japan) and 20 per cent in shares of gold miners.
The portfolio composition speaks for itself: Wood expects significant price gains for the yellow precious metal.
Bitcoin rather than gold
Shifting gold in favour of Bitcoin is a trend. Most recently, BTC-ECHO reported on the British investment company Ruffer, which wants to put 2.5 percent of its portfolio into the cryptocurrency. The investment was made at the beginning of December and was at the expense of its gold position.