Famous investor remains constructive on crypto
With bitcoin prices falling and other cryptocurrencies following suit, long-term crypto bulls will take any good news they can get.
The good news is out there, but how it affects bitcoin and broader crypto prices remains to be seen. Still, it’s notable that Paul Tudor Jones, the founder and chief investment officer of Tudor Investment, continues to see value in keeping modest crypto allocations.
He said the same thing in Monday’s interview with CNBC, noting that he maintains “a very small allocation” to crypto. It can be positive for investors considering exchange-traded funds such as Invesco Alerian Galaxy Crypto Economy ETF (SATO) and Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC).
Macroeconomic factors, including global governments taking on potentially unsustainable amounts of debt, may bode well for select digital assets in the long term.
“Jones believes that debt dynamics are so severe right now that the government may implement fiscal austerity in the near future. Fiscal austerity means that a government must introduce deflationary fiscal measures to reduce the amount of borrowing and debt, including raising taxes and cutting spending,” reports Yun Li for CNBC.
Both SATO and BLKC are relevant in this conversation. SATO is home to 41 holdings, including Grayscale Bitcoin Trust (GBTC) and a number of bitcoin miners — a list that positions the ETF for a rally in bitcoin prices.
On the other hand, BLKC, which tracks the Alerian Galaxy Global Blockchain Equity, Trusts and ETPs Index, has a larger list that runs the gamut of GBTC, miners, traditional tech and energy companies, as well as fintech names.
With exposure to the likes of Microsoft (NASDAQ: MSFT ), Intel (NASDAQ: INTC ), Cisco Systems (NASDAQ: CSCO ), Nvidia (NASDAQ: NVDA ) and Texas Instruments (NASDAQ: TXN ), BLKC could be a sound way for investors to position themselves for a bitcoin rebound while allocating to some venerable, now undervalued large and mega-cap stocks.
“In an age where there is too much money, which is why we have inflation, too much financial spending, something like crypto, especially bitcoin and Ethereum when there is a limited demand for it, will have value at some point. A today. I don’t know when that will be,” Jones said in the CNBC interview.
For more news, information and strategy, visit Crypto channel.
vettafi.com is owned by VettaFi, which also owns the index provider for BLKC and SATO. VettaFi is not a sponsor of BLKC and SATO, but VettaFi’s affiliate receives an index license fee from the ETF sponsor.
The opinions and forecasts expressed herein are solely those of Tom Lydon and may not materialize. Information on this website should not be used or construed as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.
