Investment banking firm Jefferies has revealed that it holds a 5% allocation to Bitcoin through exposure to the VanEck spot Bitcoin exchange-traded fund (ETF) HODL. Jefferies believes that Bitcoin acts as a strategic hedge against events that could lead to the devaluation of the US dollar. According to the chief strategist at Jefferies, Bitcoin provides a potential solution to a crisis that could occur if the market were to abandon US Treasuries. Hedge funds have been responsible for the majority of Bitcoin's institutional purchases in 2020, while investment advisors have been slower to integrate the cryptocurrency into their portfolios. However, VanEck plans to address this with its multi-asset portfolio, which includes Bitcoin. Jefferies also discussed the proposed Bill by Senator Cynthia Lummis that suggests the US government should create Bitcoin reserves, noting that the idea has growing bipartisan support but is unlikely to become law in the current Congress.



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