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A billion-dollar Australian investment management firm has gotten into bitcoin, citing that the cryptocurrency is superior to gold. Many of the firm\u2019s clients have been asking about investing in bitcoin. \u201cWe have been positioning in gold for our clients for many many years now. Now we\u2019re doing it with bitcoin,\u201d said an executive of the firm.<\/strong><\/p>\n 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.<\/p>\n \u201cWe have so many clients asking us about bitcoin and what to do and how to get access,\u201d said Pendal Group\u2019s head of bond, income, and defensive strategies, Vimal Gor. \u201cLarge institutions have stayed away so far, but high-net-worth clients and wholesale investors are leading the charge.\u201d He elaborated:<\/p>\n All the big hitters in the hedge fund world are coming out to endorse bitcoin now; it is entering the realm of the mainstream.<\/p>\n<\/blockquote>\n Among famed billionaire investors who have endorsed bitcoin one way or another are Paul Tudor Jones<\/a>, Bill Miller<\/a>, and Stan Druckenmiller<\/a>. 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.<\/p>\n Gor believes that \u201cbitcoin is superior to gold,\u201d AFR conveyed and quoted him as saying:<\/p>\n We have been positioning in gold for our clients for many many years now. Now we\u2019re doing it with bitcoin.<\/p>\n<\/blockquote>\n His sentiment echoes what he told online business channel Ausbiz in August when he explained the reasons he invested in gold for his clients. \u201cGold is a negative-yielding asset,\u201d but since \u201cvirtually every asset in the world is a negative-yielding asset,\u201d gold looks better than these assets on a relative basis, he detailed. However, when compared to bitcoin, he said the cryptocurrency \u201chas an advantage over gold.\u201d<\/p>\n Gor opined: \u201cIf Bitcoin is considered a store of value and a store value is purely a social construct. Then it is better than gold as it\u2019s transferable as you don\u2019t need to go and physically pick up a big heavy bar and just give it to someone else.\u201d In addition, he described bitcoin as \u201ca call option on the digitalization of the world, which is very clear where we\u2019re going with all the central banks in the world, looking at their own coins.\u201d<\/p>\n<\/p>\n Gor also shared that his fundamental analysis of bitcoin takes into account central banks\u2019 trillion-dollar quantitative easing (QE) programs, and government bonds becoming less relevant.<\/p>\n \u201cCovid just accelerated the large structural trends that were already in place,\u201d Gor remarked. \u201cThe 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.\u201d He continued:<\/p>\n 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.<\/p>\n<\/blockquote>\n What do you think about all the big money moving into bitcoin? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post Major Australian Investment Firm Moves From Gold to Bitcoin<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nBitcoin \u2018Entering the Realm of the Mainstream\u2019<\/h2>\n
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Bitcoin Superior to Gold<\/h2>\n
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Government Bonds Will Be a Dead Asset Class<\/h2>\n
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