A top market strategist, asset manager and long-term critic of Bitcoin and cryptocurrency, Inigo Fraser-Jenkins, says he has changed his mind on Bitcoin’s status as an asset. In a note to investors on November 30, 2020, the co-head of portfolio strategy at Bernstein Research, a global asset management firm with $631 billion in assets under management, said he now considers Bitcoin as an asset that investors should have in their portfolio.
“I have changed my mind about Bitcoin’s role in asset allocation,” said Inigo Fraser-Jenkins in Monday’s note to clients, reports Business Insider.
Fraser-Jenkins has been a strong critic of Bitcoin. He stated in 2018 that it was not a reliable asset and was impossible to invest in. His stance could have been exacerbated by the bloody crash that the asset experienced in 2018 following the all-time high price of 2017. Times, however, have changed and so has his perspective of the top cryptocurrency.
Fraser-Jenkins now says that the coronavirus pandemic has affected the way the world is run, including policymaking, debt and the options available to investors for diversification. As a result, Bitcoin has emerged as an attractive investment option, which could be meaningful under the current circumstances.
He, however, expressed concern that the cryptocurrency industry could be frustrated by the government if they perceive it as a hindrance to the implementation of their economic policies, also adding that crypto is still too small to cause such action and may continue to thrive as long as it remains legal.
“The greater role that governments will likely play in economies makes cryptos potentially more appealing. These very same forces also may hinder crypto. If they get in the way of policy implementation, then governments might seek to constrain them. The attractions of cryptos are what also make them potentially an annoyance for policymakers. Cryptos do have a place in asset allocation … for as long as they are legal.”
Corporate organizations have entered the crypto industry significantly in 2020 with companies such as Square buying more. As it is now, there is more than half a million Bitcoin on corporate balance sheets. Top digital assets manager Grayscale, which helps corporate investors acquire and manage cryptocurrencies, has also recorded high inflow of investments recently.
According to Fraser-Jenkins, this is due to Bitcoin’s reduced volatility over the years, one of the factors that he said may have attracted corporate investors to the space. He now recommends that investors hold some amount of Bitcoin in their portfolio for the long run.
Ponvang Bulus is a cryptocurrency enthusiast, and he writes on cryptocurrency and blockchain technology. As a believer in the glorious future of blockchain, he is helping to spread the word and get the message out there for the world to embrace the future now.
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