Not having exposure to Bitcoin could be a riskier move for portfolio managers than investing in it, says the president of CoinShares.
CoinShares chairman and former JP Morgan commodity trader Danny Masters told CNBC that the financial landscape has changed to the point that not having exposure to The News Spy could be a riskier move for portfolio managers than investing in it.
Interviewed at Power Lunch, the director of the digital asset management company referred to the fact that in the past it was considered risky for asset managers working in institutions to put money into Bitcoin. But he said that „the perceived career risk of having Bitcoin in your institutional portfolio, as a portfolio manager, is rapidly migrating to a career risk of not having Bitcoin in your portfolio, and that’s a really impressive development.
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CNBC anchor Kelly Evans summarized the statement:
„That’s perfectly well said; you’re not going to get fired if you have any Bitcoin, but you could get fired if you didn’t.“
Masters believes that the perception of Bitcoin as an extremely volatile asset has diminished because „the volatility of other asset classes has proven to be much greater than people expected.
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He said Bitcoin has shed its old negative stigma among conventional investors and that it is no longer a question of whether companies will be exposed to digital assets, but when and how much, citing investments by Square, Microstrategy and Paypal.
These companies „are outperforming the market because they are going public with their exposure to Bitcoin,“ and as a result:
„The feeling is electrifying, there’s no doubt about it.“
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In October, Masters declared that Bitcoin was increasingly resilient and in a very strong position, as its price refused to falter despite news of accusations against the founders of the major BitMEX derivatives exchange that would have driven down prices in the past:
„Having been close to the crypto currencies during the MtGox crash, the China ban, Trump’s comments and Bitfinex hacking, and many of the other stories that are shattering the market and punctuating the Bitcoin story, I was struck by the lack of negative price movement, particularly in relation to BitMEX.
The Fear and Greed Index stands at 92 out of 100, indicating a feeling of extreme greed. These levels had not been recorded since June 2019 when the index reached 95.