Global investment bank Jefferies advises investors, particularly pension funds, to consider Bitcoin (BTC) as a means of safeguarding their portfolios against currency devaluation and rising inflation. Jefferies suggested that long-term investors should allocate up to 10% of their portfolio to Bitcoin denominated in U.S. dollars. The bank highlights that investors should regard Bitcoin and gold as insurance investments in light of the current economic cycle. Christopher Wood, Jefferies’ Global Head of Equity Strategy, expresses concerns about the ability of central banks, such as the Federal Reserve, to make a successful transition away from unconventional monetary policies. He also insists on the need for strategic investments when it comes to evolving economic landscapes. Bitcoin is being seen by many investment banks as an inflation hedge.

Jefferies' remarks come in the wake of recent issues in the banking sector. Various financial institutions, including Signature Bank, Silicon Valley Bank, and First Republic Bank, experienced significant challenges earlier this year, due to customers' lack of confidence in their stability and a consequent rapid withdrawal of funds.

The prospect of a spot Bitcoin Exchange Traded Fund (ETF) is being actively discussed in the industry. An ETF allows investors to trade digital currency without owning the underlying asset. A recent court ruling in favor of Grayscale Investments, managing the world’s largest crypto fund, has given rise to optimism of approval for a Bitcoin ETFs. Nevertheless, the SEC has consistently raised concerns about potential market manipulation and investor protection.

Industry leaders such as Steven Schoenfeld have expressed optimism about the chances of multiple simultaneously approved ETFs. Furthermore, the US House Financial Services Committee wrote a letter to SEC Chair Gary Gensler, pushing for the approval of ETF applications. Finally, Cathie Wood's, the CEO of ARK Invest, newly found optimism has only added to the hopeful expectations of a Bitcoin spot ETF in the US.

It appears that the chances of a spot Bitcoin ETF's approval are increasing as more entities join forces to simplify investors' access to cryptocurrency.



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