BitMEX CEO Expects Investors to Follow Paul Tudor Jones’ Move to Bitcoin
|Paul Tudor Jones, a legendary hedge fund investor, triggered massive excitement in crypto markets yesterday by revealing that Bitcoin (BTC) is part of his portfolio. Traders and industry players like BitMEX’s CEO expect that the move will bring more big investors to the market.
Arthur Hayes, CEO of the world’s second largest crypto exchange, BitMEX, says that Jones has just removed career risk from investing in cryptos like Bitcoin. “Expect a lot of beta fund managers to begin cooking some copypasta,” Hayes tweeted May 7.
Jones paves the way for other hedge fund managers to get into Bitcoin
Hayes is not alone in thinking that more institutional investors will follow Jones’ method to hedge against inflation risks. On May 7, CNBC's Bitcoin baller, Brian Kelly, or BK, 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 panelist, 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.”
Bitcoin has higher upside than gold, Brian Kelly says
Jones said that Bitcoin reminds him of the crucial role that gold played in the economic crisis of the 1970s. According to CNBC's BK, both Bitcoin and gold can do well in the current economic environment due to their common features, like a capped supply. However, the CNBC Bitcoin analyst says that Bitcoin will play a bigger role in the current environment due its digital and mobile nature. Kelly also outlined that Bitcoin has a “much higher upside” and a better risk-to-reward.
On May 2, major United States’ crypto exchange, Coinbase, published a report arguing that the pandemic-fueled crisis will make Bitcoin superior to gold.
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