{"id":136133,"date":"2020-06-11T08:00:13","date_gmt":"2020-06-11T07:00:13","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=136133"},"modified":"2020-06-11T23:30:27","modified_gmt":"2020-06-11T22:30:27","slug":"22-billion-fund-manager-says-buy-gold-bitcoin-as-bond-markets-fail-as-a-hedge-after-u-s-quant-easing","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/22-billion-fund-manager-says-buy-gold-bitcoin-as-bond-markets-fail-as-a-hedge-after-u-s-quant-easing\/","title":{"rendered":"This $22 billion fund manager says buy Gold, Bitcoin as bond markets fail as a hedge after U.S. Quant Easing"},"content":{"rendered":"

The ongoing COVID-19-pandemic has served as a defining point of modern financial markets.<\/span><\/p>\n

The U.S. and global indices are close to all-time highs, after an initial dip in March, even as virus casualties, global unrest, and unemployment linger on. To combat, some billionaire fund managers like Paul Tudor Jones have called out the instability in global markets<\/a> and purchased Bitcoin futures as a hedge against possible hyperinflation.<\/span><\/p>\n

Now, a $22 billion rated fund manager is starting to recommend cryptocurrencies as a hedge alongside gold, for numerous reasons apart from currency risk.<\/span><\/p>\n

No government bonds, buy Bitcoin<\/b><\/h2>\n

Paul Britton, CEO of Capstone Advisors in New York, believes<\/a> the decades-old strategy of holding government bonds to balance equity risk may have run its course. His main reason; the U.S. Federal Reserve lowered interest rates to zero, allowing many to access technically \u201cfree\u201d money to eventually purchase equities and pump markets.<\/span><\/p>\n

The change has huge implications. Fiat currencies like the U.S. dollar have been exposed to inflation and long-term risk. Reports also suggest equity markets are now dominated by retail traders instead of hedge funds and banks, causing dislocation in prices and a deviation from fundamentally-derived intrinsic value.<\/span><\/p>\n

Some institutions have already started storing Bitcoin and Ether, presumably for risk protection:<\/p>\n

\n

Pension funds, family offices, advisers & hedge funds…these are the institutions<\/p>\n

And the institutions are here:<\/p>\n

– 27% own crypto (in the U.S.)
– 45% own crypto (in Europe)<\/p>\n

Of these:
– 25% own Bitcoin
– 11% own Ether<\/p>\n

I expect them to double down in the coming months<\/p>\n

— Ryan Sean Adams – rsa.eth ? (@RyanSAdams) June 9, 2020<\/a><\/p><\/blockquote>\n