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Bitcoin advances on Wall Street: hedge funds and companies increase their position in cryptocurrencies

Bitcoin advances on Wall Street: hedge funds and companies increase their position in cryptocurrencies
Bitcoin advances on Wall Street: hedge funds and companies increase their position in cryptocurrencies

More than 50% of hedge funds in Wall Street has exposure to BitcoinFor example, Millennium Management, which holds 27,263 BTC worth $1.69 billion, allocated about 2.5% of its $67.7 billion in total assets under management to Bitcoin.

More than half of major US hedge funds disclosed their exposure to Bitcoin exchange-traded funds (ETFs) recently, as the BTC/USD pair has significantly outperformed major stocks and indices.

One of them has 2.5% of his portfolio in Bitcoin. Data from investment firm River reveals that 13 of the top 25 US hedge funds owned Bitcoin ETFs as of the end of Q1 2024.

Other major players include Schonfeld Strategic Advisors with 6,734 BTC and Point72 Asset Management with 1,089 BTC. In contrast, some major hedge funds such as Bridgewater Associates, AQR Capital Management and Balyasny Asset Management have not yet invested in Bitcoin.

Curiously, Bitcoin’s growing acceptance coincides with rising cash reserves at US companiesIn particular, cash or cash equivalents held by companies hit an all-time high of $4.11 trillion in the first quarter of 2024, according to an analysis by treasury advisory firm Carfang Group.Some – if not most – of these companies, such as Reddit, Semler Scientific, JPMorgan, Wells Fargo and others, have allocated a small portion of their cash reserves to Bitcoin or Bitcoin ETFs.

Bitcoin: adoption doesn’t stop

This trend indicates that American companies, including hedge funds and corporations, have become more confident in treating Bitcoin as a viable asset for diversification and hedging against traditional market risks.

Bitcoin to outperform Apple and Tesla stocks in 2024. Wall Street’s interest in Bitcoin is increasing as the cryptocurrency outperforms major stocks and stock indices.

In particular, BTC’s profitability in the first half of 2024 was around 94%. In comparison, the US benchmark S&P 500 index rose by 23%, while the Dow Jones Industrial Average grew by 14% over the same period.Even Apple and Tesla stocks underperformed Bitcoinup 10% and -29% respectively so far this year. However, Nvidia, which recently became the world’s most valuable listed company, has outperformed Bitcoin, rising more than 150% in the first six months of 2024 due to the rise of artificial intelligence.

bitcoin cryptocurrencies

In particular, BTC’s return in the first half of 2024 was around 94%. In comparison, the US benchmark S&P 500 index rose by 23%, while the Dow Jones Industrial Average grew by 14% over the same period.

Veteran trader Peter Brandt expects Bitcoin’s relevance to increase as a hedge asset, particularly against traditional safe haven assets like gold. He noted that BTC’s market cap could increase by 230% against gold after 2025.

Earlier this year, ARK Invest’s annual research report concluded that institutional portfolios seeking to maximize risk-adjusted returns should have allocated 19.4% to Bitcoin in 2023.

Source: Ambito

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