Cryptocurrencies

Jefferies’ Wood Cuts Gold Exposure in Favor of New Position in Bitcoin

A stampede of bitcoin buyers pushed the cryptocurrency over the $20K threshold.

Christopher Wood, global head of equity strategy at investment firm Jefferies, cut his exposure to gold for the first time in years in favor of bitcoin, Business Standard reported.

  • Wood will be cutting the gold position in his long-only asset allocation for U.S.-dollar-based pension funds to 45% from 50% and initiating a 5% holding of bitcoin, the report said.
  • Wood, while remaining bullish on the yellow metal, said he’ll add more BTC to the fund should the cryptocurrency drop significantly.
  • The head of equity strategy had previously refrained from investing in BTC out of a fear of hacking and that it could have been declared illegal due to its sometimes use in nefarious purposes, the publication said.
  • The remaining allocations in the fund are a 30% weighting in Asia ex-Japan equities and 20% in unhedged gold mining stocks.
  • Wood is looking for a “dramatic cyclical recovery” after the pandemic subsides, Business Standard said.

Read more: Bitcoin Sailing in Uncharted Waters as Price Crosses $22K for First Time

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