Fun

Major Australian Investment Firm Moves From Gold to Bitcoin

News Feed - 2020-11-26 01:11:43

Major Australian Investment Firm Moves From Gold to Bitcoin


A billion-dollar Australian investment management firm has gotten into bitcoin, citing that the cryptocurrency is superior to gold. Many of the firm’s clients have been asking about investing in bitcoin. “We have been positioning in gold for our clients for many many years now. Now we’re doing it with bitcoin,” said an executive of the firm. Bitcoin ‘Entering the Realm of the Mainstream’


Australian investment management company Pendal Group has started investing in bitcoin through futures contracts on the Chicago Mercantile Exchange, AFR publication reported Monday. Pendal is a global investment management company listed on the Australian Stock Exchange (ASX) under the symbol PDL. Its market capitalization is currently $1.6 billion.


“We have so many clients asking us about bitcoin and what to do and how to get access,” said Pendal Group’s head of bond, income, and defensive strategies, Vimal Gor. “Large institutions have stayed away so far, but high-net-worth clients and wholesale investors are leading the charge.” He elaborated: All the big hitters in the hedge fund world are coming out to endorse bitcoin now; it is entering the realm of the mainstream.


Among famed billionaire investors who have endorsed bitcoin one way or another are Paul Tudor Jones, Bill Miller, and Stan Druckenmiller. Jones recently said he sees massive upside to bitcoin, comparing the cryptocurrency to investing in early tech stocks, such as Apple. Miller believes that eventually all major banks, investment banks, and high net worth firms will have exposure to bitcoin, while Druckenmiller said the cryptocurrency could beat gold. Bitcoin Superior to Gold


Gor believes that “bitcoin is superior to gold,” AFR conveyed and quoted him as saying: We have been positioning in gold for our clients for many many years now. Now we’re doing it with bitcoin.


His sentiment echoes what he told online business channel Ausbiz in August when he explained the reasons he invested in gold for his clients. “Gold is a negative-yielding asset,” but since “virtually every asset in the world is a negative-yielding asset,” gold looks better than these assets on a relative basis, he detailed. However, when compared to bitcoin, he said the cryptocurrency “has an advantage over gold.”


Gor opined: “If Bitcoin is considered a store of value and a store value is purely a social construct. Then it is better than gold as it’s transferable as you don’t need to go and physically pick up a big heavy bar and just give it to someone else.” In addition, he described bitcoin as “a call option on the digitalization of the world, which is very clear where we’re going with all the central banks in the world, looking at their own coins.”


Government Bonds Will Be a Dead Asset Class


Gor also shared that his fundamental analysis of bitcoin takes into account central banks’ trillion-dollar quantitative easing (QE) programs, and government bonds becoming less relevant.


“Covid just accelerated the large structural trends that were already in place,” Gor remarked. “The first and main one was falling official interest rates and bond yields. With large scale central bank QE programs in place, bond yields are going to stay low for a very long time.” He continued: We think ultimately that government bonds will turn into a dead asset class, so we now have to imagine what it will be like for other assets classes when bonds are no longer relevant to hold in a portfolio.


What do you think about all the big money moving into bitcoin? Let us know in the comments section below. Algorithmic Bitcoin and Ethereum Social Attention List Ranks Influencers With Math NEWS | 14 hours ago John Lennon"s Son Says Bitcoin Empowers People, Gives Him Optimism in Ocean of Destruction NEWS | 18 hours ago Tags in this story australian fund, australian fund manager, bitcoin better than gold, Bitcoin vs gold, government bonds, institutional investors, investment firm, pendal group bitcoin


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Microsoft Stock Blows Away Critics With Huge Buyback Plan
Quick, guess the world"s most valuable company? Apple, Facebook, Google? It"s none of those. Instead, Microsoft has claimed the title. The software giant is now worth $1.1 trillion, narrowly edging out Apple for the top
Amaka Nwaokocha13 hours agoSEC vs. Ripple: Pro-XRP lawyer urges Clayton, Hinman testimonyJohn Deaton points out that testimony from former SEC officials Bill Hinman and Jay Clayton during the SEC vs. Ripple Labs case wou
Estonia Offers to Share Crypto Experience With US to Identify Best Practices for Digital Assets
Estonia Offers to Share Crypto Experience With US to Identify Best Practices for Digital Assets Estonian Finance Minister Keit Pentus-Rosimannus has offered to share her country&#x
Ether on Lightning Is the Latest Bridge Crossing Crypto’s Great Divide
Ethereum developers are using the Lightning payments network to build bridges into the bitcoin ecosystem. The venture-backed crypto startup Radar, best known for its decentralized e
Biden resurrects 30% crypto mining tax in new budget proposal
Ezra Reguerra57 minutes agoBiden resurrects 30% crypto mining tax in new budget proposalU.S. Senator Cynthia Lummis said that while this shows that the government is bullish on crypto, a 30% tax would destroy the industr
Data Shows There’s No Profits Left for Bitcoin Miners That Can’t Obtain Cheap Electricity, Run Efficient Mining Rigs
Data Shows There’s No Profits Left for Bitcoin Miners That Can’t Obtain Cheap Electricity, Run Efficient Mining Rigs During the last few weeks bitcoin’s cost of production ha
Grayscale’s Bitcoin ETF records lowest outflows since conversion
Ana Paula Pereira4 hours agoGrayscale’s Bitcoin ETF records lowest outflows since conversionGrayscale’s GBTC posted $44.2 million in withdrawals on Feb. 23, marking its lowest daily volume since transitioning to an E
Marcel Pechman1 hour agoBitcoin options strategy: How to trade July’s Q2 earningsProfessional traders can hedge their Bitcoin bets using the iron condor options strategy as the Q2 earnings season comes into play.443 To
Stablecoin USDN Trades Below $1 Parity for 14 Days in a Row, Token Taps $0.91 Low This Week
Stablecoin USDN Trades Below $1 Parity for 14 Days in a Row, Token Taps $0.91 Low This Week Approximately 14 days ago, the stablecoin neutrino usd (USDN) tapped a high of $0.994 pe
Marathon Digital shares plunge 8% after Q2 revenue miss estimates
Ciaran Lyons7 hours agoMarathon Digital shares plunge 8% after Q2 revenue miss estimatesMarathon Digital has missed consensus estimates for the second quarter in a row, though its year-on-year performance has risen by 78
Research Finds Bitcoin Mining Equates to 0.10% of Global Greenhouse Gas Emissions
Research Finds Bitcoin Mining Equates to 0.10% of Global Greenhouse Gas Emissions According to a recent report published by the Cambridge Centre for Alternative Finance (CCAF), bit
Savannah Fortis10 hours agoEU stays on top of Web3 with metaverse, AI and crypto strategiesOver the last year, leaders in the European Union have been vocal about their desire to stay on top of the latest developments in