Why Are Hedge Funds Buying Bitcoin? And Why It Just Might Be a Smart Play
Per the Kevin O’Leary CNBC podcast that I just watched, it almost seems prudent to get some Bitcoin exposure in your portfolio at this point, even as the price trades at more than $45,000 per coin at the time of me writing this article, when as recently as 2015, we were looking at a Bitcoin price of around $700 per coin. And so why are hedge funds buying Bitcoin, and why might this just be a much smarter move than it originally lets on? With the influx of institutional money hitting the Crypto Currency market, with it becoming much more regulated, and with Crypto being shown on CNBC on just about every single second of the day as it is being put up as a major stock on the news, the influx of cash to the Coin, and therefore the Market Capitalization of the coin, are all pretty much primed to skyrocket. Being I just opened up a Roth IRA, I am seriously considering taking my next $6,000 contribution and putting it all into a Greyscale Bitcoin Trust, or any other way that I can get Bitcoin exposure, as soon as humanly possible. I seriously think that this could be a 10 or a 20 bagger purchase in the next 10 to 20 years, which could turn a $100,000 investment into something like $2,000,000.00. For more information on all things Bitcoin, read on or subscribe to our blog for additional details and information.
Some Hedge Funds that are currently moving into Bitcoin include:
The $850 Billion Market Cap that it Currently Maintains
Steve Cohen’s Fund
And a host of other funds, read on or subscribe to our blog for additional details and information.
Why Are Hedge Funds Buying Bitcoin? And Why Funds Are Getting 10-20% Of Their Portfolio Exposure In Crypto
Kevin O’Leary just put 20% of his entire O’Leary fund holdings into Bitcoin, as he thinks it is going to be the 12th sector of the S and P 500 one day, and I think that he might just be right. I am personally going to be likely moving 1/2 of my Roth IRA into the Greyscale Bitcoin trust as soon as I get my next Roth IRA Contribution in salary. I feel that this is the absolute best opportunity to hit an extreme amount of gains in a portfolio, and I feel that the Sovereign wealth funds and institutional investors are starting to realize this. Top it all off with the fact that we have United States Inflation at 10% and Global Inflation at more than 7%, and we’ve got a serious recipe for a Bitcoin success.
Other currencies that I would like to speculate on as well are Ripple, Ethereum and Monero, however these are a lot more difficult to get exposure on without holding physical coins on something like an exchange, the Blockchain, or on a paper wallet, so I will very much stick with Bitcoin exposure for now. The day an ETF comes on the market where I can get Ethereum or Ripple exposure however, you had better bet your lucky socks that I will be jumping on that as soon as humanly possible.
Is Bitcoin a Smart Buy? It May Very Well Be In 10 to 20 Years
Bitcoin is a smart buy for the long to medium term I feel. I think that with the United States and other countries regulating it, that it is not going away anytime soon. It is a software, and software’s upgrade and adapt, I think that Bitcoin is going to update and adapt with the times, and that anyone that does not have Crypto exposure at this point is going to be left standing naked in the rain.
Why I Feel Hedge Funds Buying Bitcoin Is a Sign to Put Bitcoin Into My Roth IRA
Kevin O’Leary is an extremely smart investor, and is likely one of the best speakers and investors out there. If he says that he is allocating 20% of his entire fund into Crypto Currency exchange funds, then the once staunch denouncer of Bitcoin may just be on to something. Now may be the last time we will ever be able to get a huge rally out of Bitcoin, when we see it spike from $40,000 to $500,000 or $1,000,000 over the next 1-2 decades. Make sure you get some exposure now while there is still a chance for these type of 2,000% to 4,000% gains, you may never see a stock like this again that you can purchase with this kind of exposure.
Final Thoughts on Why Are Hedge Funds Buying Bitcoin? Volatility And The Amazing Ability of Speculation
Hedge Funds are buying Bitcoin to get Crypto exposure as a new asset class, in a rapidly changing economy. Anyone who understands finance on a high level or who works in the industry either takes one of two positions on Crypto, to invest in it cautiously as a small portion of your portfolio to get additional exposure, or to stay the heck away from it. I used to be a stay the heck away from it type of investor, but with the fact that large Institutional funds are putting a pretty substantial portion of their assets into Bitcoin, I think it rings true that at least 10-20% of your portfolio should be in a Crypto fund now, heed this advice at your own peril.
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