Bitcoin (BTC), Cryptocurrency, News

Billion-Dollar Investment Firm Jefferies Plan To Invest In Bitcoin By Cutting Exposure To Gold

Throughout this year, the pioneer cryptocurrency Bitcoin (BTC) has attracted the attention of a lot of traders and investors. Institutional interest, especially, spiked high in Bitcoin this year. Over the past few months, the demand from institutional investors for the top-ranked digital currency has increased significantly. Various big investment firms have invested in Bitcoin in recent times. Apart from the business intelligence firm MicroStrategy and the financial services company Square, the 169-years-old American mutual life insurance company Massachusetts Mutual Life Insurance Company also made an investment of $100 million in Bitcoin a few days ago.

It does not end here as many other major companies are slowly flowing into Bitcoin with the intention of making an investment in this famous digital currency. Another famous company has revealed plans to invest in the world’s largest digital currency by market value. Jefferies, a billion-dollar investment company based in the United States is the latest major institution that has shown interest in Bitcoin. The spectacular performance of Bitcoin over the past few weeks has lured this firm as well.

Cutting Exposure To Gold In Order To Invest in Bitcoin

As reported by Business Standard, the Global Head of Equity Strategy at Jefferies Christopher Wood has disclosed the plans of the company that it is looking into the idea of purchasing some amount of Bitcoin. For this purpose, Wood said that the firm will be cutting exposure to Gold in order to expand exposure to cryptocurrency. It means that the company is planning on lowering gold from its portfolio in a bid to add some BTC to it.

While  talking about this in a statement, Wood said:

“The 50 percent weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin. If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.”

As of the recently shared data for the third quarter of the present year, 50 percent of the portfolio is in Gold and 5 percent will be converted into Bitcoin. Jefferies currently has $51 million in Assets Under Management (AUM) as it revealed in its latest report of Q3 2020.

Meanwhile, the primary cryptocurrency is smashing through new highs. A few hours ago, the price value of the leading digital currency touched the level of $24,000 and recorded a new all-time high value. This outshining performance of BTC is actually attracting more and more institutional investors.

Leave a Reply

Your email address will not be published. Required fields are marked *