In the space of institutional investments, Paul Tudor Jones is a rather influential name. He is a legendary hedge fund investor and has long influenced many people’s investment strategies. At a time where the markets are in a really bad place, Jones has made a pretty bold call for his own fund that may have people flooding to Bitcoin.
Jones, this week, made the cryptocurrency news and triggered a lot of excitement when he noted that Bitcoin is part of his portfolio. This, of course, adds a lot of legitimacy to Bitcoin as an investable asset, especially for the more gun-shy institutional investors who have seen their normal markets rocked.
In the meantime, Bitcoin has shown its ability to rebound after it too faced a dark drop in Mid March, the coin is now flirting with $10,000 after going as low as $3,700 and this is clearly an exciting prospect for investors who are concerned about where they can make money. More so, the growth of the derivative market scene has made it very accessible for traditional investors to get involved.
Excitement in the crypto market
This move from Jones has, of course, excited many in the crypto industry, and the likes of Arthur Hayes, CEO of the world’s second largest crypto exchange, BitMEX, believe he is paving the way for more traditional investment.
“Paul Tudor Jones just removed career risk from investing in #bitcoin. Expect a lot of beta fund managers to begin cooking some copypasta,” Hayes tweeted.
Hayes is not the only one in thinking that more institutional investors will follow Jones’ method to hedge against inflation risks. CNBC’s Bitcoin believer, Brian Kelly, and CNBC’s Fast Money traders discussed the potential impact of the billionaire investor’s Bitcoin news.
Karen Finerman, co-founder and CEO of Metropolitan Capital Advisors and a CNBC Fast Money panellist, also believes that Jones is paving the way for more hedge funds and mainstream investors to get into Bitcoin. Finerman outlined that people will feel more safe buying Bitcoin now that Jones has invested in it:
“Nobody wants to get outed having owned Bitcoin if it completely falls apart. But if you can say that Jones owns it also, maybe that gives you a little bit of cover.”
One of the bigger goals in crypto has been to attract the institutional investors, but the market certainly felt the sting of doing so when the market collapse in mid march was attributed to the institutional money quickly evacuating the space in fear of further risks.