The last 24 hrs in the Bitcoin community have been all about “Paul Tudor Jones” a reputed wall street hedge fund manager who in a letter to his clients explained cryptocurrency as a performer amid the current market meltdown. While many already are taking his words seriously some crypto investors are still skeptical about his impact in the crypto market.
Meanwhile, many renowned crypto and forex experts believe this as a remarkable foot for bitcoin and envision it as an event that will attract more macro investors to cryptocurrencies. In this article, we aim to provide clarity that why Paul Tudor Jones’s entry to crypto space may be a catalyst to the next bull run.
Tudor Investment Corp Has Around $38B in AUM
As per the latest data available,
Tudor Investment Corporation has around $38 billion in Assets Under management, simply put even low single digits allocation to BTC futures like 1% would be $380 million!
With Paul clearly mentioning his interest in cryptocurrencies as an inflation hedge and indicating the same to his clients in his letter, it’s clear that Tudor Investment Corp is taking Bitcoin seriously. Bitcoin has outperformed major hedge options like Gold and Silver this year and recently CME bitcoin options volumes set record nominal highs.
The debate of Institutional investor attraction towards Bitcoin’s performance as an asset is no more a grey area with Paul’s entry into the game with his own $5.1 Billion net worth and his hedge funds ~$38 Billion in AUM.
Bitcoin Bought as An Inflation Hedge Instead of Gold & Oil
With news of Bitcoin outperforming Gold & silver as an asset this year hitting the mainstream media it was only a matter of time for macro investors to take strides towards the decentralized asset. As reported by Independent, Bitcoin overtook Gold and oil as a better asset for investors in 2020 and the covid-19 forced market meltdown made Bitcoin more attractive for seasoned investors.
If we compare just 10 firms similar to Tudor Investment corp and compare their assets under management, the numbers are staggering and total up to over $370 Billion!!
Considering even 1% of this allocation coming Bitcoin’s way would mean market to reach to its new heights and with Paul Tudor already in game it will be interesting to see how many of these firms follow his pursuit.
Paul Tudor Jones Net worth ~$5.1 B Other Macro Investors to Follow
Paul Tudor Jones is founder and CEO of Tudor Investment Corp. an asset management firm headquartered in Connecticut. He is a major macro investor and his macro trades include interest rates & currencies. As per the list of richest people published by Forbes in Nov. 2019, his estimated net worth was around $5.3 billion. For Bitcoin & cryptocurrencies to be selected as a better inflation hedge over Gold will spread like wildfire among the macro investors.
Going by the reputation Paul holds on wall street more and more macro investors are going to follow Paul’s decision and Bitcoin will see a rise in demand as it becomes more favored asset over Gold. Even 1% of this allocation would be in Billion for Bitcoin and cryptocurrencies.
What’s your opinion on Paul’s entry to Bitcoin? Do you think it will lead the next bull run?
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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com