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Tudor buys Bitcoin futures


Paul Tudor Jones II, American tycoon and billionaire, has decided to purchase Bitcoin Futures as an inflation hedge.

In particular, Tudor confessed that an inflationary wave could come due to the printing of money by the Central Bank. Therefore, he tells his clients that the situation reminds him of the role gold played in the 1970s.

Bitcoin is the fastest horse in the impending inflation race

According to Bloomberg, Jones noted that the best strategy he can have to maximize profits is to have the fastest horse in a note titled “Great Monetary Inflation.”

“If I am forced to forecast, my bet is that it will be Bitcoin.”

Jones noted by regarding Bitcoin as the fastest horse.

Therefore, Jones’ Global Tudor BVI Fund, managed by Tudor Investment Corp., has been authorized to maintain as much as “A low single-digit percentage exposure percentage” of your Bitcoin futures assets.

Such action makes him one of the first major hedge fund managers to decide to adopt what has so far been rejected by the mainstream: Bitcoin.

The truth is, Jones emphasized not being a cryptocurrency freak. However, the monetary policy carried out to face the Coronavirus crisis led the investor to pay attention to Bitcoin.

In fact, Jones noted in his client report that this is a “Unprecedented expansion of each form of money unlike anything the developed world has ever seen.” According to his calculation, since February the equivalent of 6.6% of world economic production has been printed.

In particular, Bitcoin was not the investor’s first choice at first. He thought about gold, treasury bonds, and certain types of stocks before recognizing Bitcoin.

Jones sees certain similarities to gold in Bitcoin in the 1970s, when the precious metal underwent a strong recovery from $ 35 per ounce in 1971 to a peak of $ 180 in late 1974.

Invest in Bitcoin Futures, don’t buy Bitcoin directly

Paul Tudor buys Bitcoin futures, however he did not buy Bitcoin directly on the spot market.

Jones, although he is not a fan of cryptocurrencies, assured that “The most compelling argument for owning Bitcoin is the upcoming digitization of the currency everywhere, accelerated by COVID-19.”

However, an important element is that Jones did not buy Bitcoin directly on the spot market. Rather, he headed to the derivatives market where he acquired Bitcoin futures.

In this sense, let’s remember that Bitcoin Futures are ideal for institutional investors. The reason is that it allows them to indirectly enter the world of cryptocurrencies.

Furthermore, at the moment, it is not known whether said futures are settled in cash or physically (in Bitcoin). However, Jones’ entry into the crypto industry remains a bullish indicator.

An important element that should be mentioned is that, in his report, Jones inserted a subjective classification of certain assets by their ability to store value. In this ranking, Bitcoin was in last place compared to financial assets, gold and cash.

“What surprised me was not that Bitcoin was the last, but it scored as high as it did”, wrote. Still, in the same report, he defends the belief that Bitcoin will play a “growing role” as a hedging asset in the future.

Still Paul Tudor buys Bitcoin futures and that can be very positive for his crypto adoption.

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